Daily currency report

The euro rose to a record high against the yen after comments from the Group of Seven industrial nations at the weekend. The sterling rose to a three-month high against the dollar on anticipations of interest rate increases next month.

GBP

The sterling hit a three-month high against the dollar and also posted a seven-week high against the Japanese yen as investors continued to favour currencies with a higher interest rate return. The pound has also benefited from dollar weakness after data showed tame producer price pressures.

USD

The dollar was the biggest loser as it slumped further tumbling to a fresh 17-year low against the Aussie and a new two-year low versus the euro. The key highlight over the weekend turned out to be a non-event among currency traders, with the G7 communiqué providing little new information to digest and maintaining a similar tone on currencies.

EUR

The euro rose to a record high against the yen after the G7 industrial nations refrained from saying Japan's currency is too weak and European officials said exchange rates aren't holding back their economies.

JPY

The yen hit a record low against the euro after the G7 finance officials did not single out the Japanese currency's weakness at a weekend meeting before trimming its losses as investors took profits on the drop. The G7 repeated its call for exchange rates to reflect economic fundamentals, and traders said the lack of surprises from the meeting appeared to give a green light to carry trades, in which investors borrow funds in low-yielding currencies such as the yen to invest in higher-yielding currencies and assets.