The euro scaled record peaks against the yen and rose versus the dollar. The dollar trimmed some losses against the euro and the sterling held firm versus the dollar and euro.

GBP
The pound was higher thanks to stronger growth in house prices during December. Holiday sales are reported to have been very strong, giving the BoE a good reason to consider another rate hike early next year.

USD
The dollar approached a two-month high against the yen and pared losses versus the euro, after US reports showed consumer confidence and existing home sales unexpectedly rose. The US currency erased its earlier decline against the yen as the data may reduce speculation the Fed will cut borrowing costs.

EUR
The euro hit a fresh record high against the yen and advanced against the dollar after comments from the ECB governing council member. This heightened expectations that the central bank would raise eurozone interest rates next year.

JPY
The BoJ could be weighing a 25 versus 50bp interest rate hike early next year. However, the BoJ Governor claimed that rate hikes will come "slowly" and will depend on incoming economic data.

And on a final note, have a great New Year and may 2007 be a healthy and prosperous one for all.

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