Daily currency report

The unexpected rise in UK interest rates by the BoE pushed the sterling up against the euro and the dollar. This left the expected eurozone interest rate increase with little impact on both currencies.

GBP
The surprise jump in UK interest rates to 4.75 per cent sent London shares and bonds reeling and the pound sharply higher. The BoE's decision also knocked shares in other European markets and Wall Street as it increased expectations the Fed might follow suit and also raise rates.

USD
The dollar staged a brief rebound against the euro, but it later fizzled out.

EUR
A widely expected interest rate rise to three per cent did not do much to lift the euro. However, in the ECB's statement afterwards, bank President Jean Claude Trichet signalled there could be further rate increases before Christmas should the eurozone economy perform as expected.

JPY
Japanese Finance Minister Sadakazu Tanigaki reiterated calls to give Asian emerging economies more voting power in the international monetary fund to reflect their growing role in the global economy. As yet this has had no impact on the yen.