The sterling surged and the euro reached a fresh 20-month high sparking off a violent dollar selling spree. Investors started to speculate on the future of the US economy with the word "recession" being whispered on trading floors across the world.

GBP

The pound has been one of the best performers against the dollar this year posting a 14 per cent gain. Gains have been fuelled by inflation-busting BoE rate hikes, inflows from mergers and acquisitions, and central bank reserve purchases. The pound has now fallen against both the dollar and the euro.

USD

Once again, the dollar grabbed the headlines as it fell further on the back of worries about the weakening US economy and the Fed rate outlook after weak Chicago PMI. This poor data triggered exaggerated selling of the dollar, causing the greenback to lose more than one per cent against the sterling and the euro.

EUR

The euro is slip-streaming the pound, making gains against every currency across the board apart from the sterling.

JPY

The yen had an initial knee-jerk decline after a report showed Japan's consumer prices slowed in October, adding the uncertainty of BoJ rate hike timetable. The yen moved back to its original level against the dollar but is still hovering at an all-time low against the euro.

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