The yen hit a record low against the euro and eight-year lows against the sterling since the BoJ may not raise interest rates this year. The dollar weakened when Former Fed chairman Alan Greenspan said the dollar will probably keep falling.

GBP
The pound was steady against the dollar but eased versus the euro after above-consensus UK trade and producer price data were offset by signs of weakness in a key housing survey, casting doubt over a possible interest rate hike early next year.

USD
The dollar fared well as investors prepared for the possibility that the Fed will dash expectations for an early 2007 interest rate cut. However, comments from former Fed chairman put the dollar on the back foot.

EUR
The sterling declined versus its European counterpart on expectations the UK's interest rate advantage over the euro region will narrow. The BoE kept its repurchase rate at five per cent while the European Central Bank raised its benchmark.

JPY
In Japan, hawkish comments from BoJ policymakers had boosted expectations for a December rate hike, but such views took a knock from softer than expected economic data.

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