Daily currency report
Overview
The US Fed policy may break the chain of interest rate rises they began two years ago but economists say this will not necessarily mean they are laying down arms against inflation.
GBP
The sterling rose to an eight-month peak against the euro and closed in on the 15-month-high against the dollar, holding bullish momentum created by a surprise Bank of England interest rate rise.
USD
The dollar almost reached a two-month low against a basket of currencies as investors positioned themselves for an expected pause by the Fed in its two-year campaign of interest rate hikes.
EUR
The ECB has indicated that it will not hesitate to raise interest rates further to head off rising inflation. They will do what is needed at the right time, although there was no pre-commitment to future moves when the ECB raised its base rate to three per cent.
JPY
Japan's economy has been enjoying a healthy recovery over the past few years and corporate capital spending has become a key engine of growth, pushing up the demand for bank loans.