Daily Currency Report

In the eurozone, PMIs and the EC sentiment survey are due for release, which are expected to remain at good levels confirming that activity in Europe remains strong.

GBP
The sterling rose against the dollar and the euro as investors focused on possible investment from corporate takeover activity and strong UK economic data.

USD
The dollar held near a four-year high against the yen as investors wait for a Federal Reserve policy statement due for clues on the course of US interest rates. The US central bank is widely expected to keep interest rates unchanged at 5.25 per cent when it concludes its two-day meeting.

EUR
The euro fell sharply against the yen after a German Finance Minister said that the euro-yen exchange rate would be discussed at next week's meeting of the G7 rich countries. On a positive note for the eurozone, unemployment fell more than expected in Germany in January with a decline of 106,000 from a revised decline of 130,000 in December.

JPY
The yen rose for a second day against the dollar on speculation that finance chiefs and central bankers from the Group of Seven nations will express concern over the yen's weakness at a meeting next week.