The dollar remained close to recent lows against the other majors as investors' attention turns to the Fed's policy meeting, convinced that the Fed will deliver another interest rate cut. Elsewhere, Swiss investment bank UBS became the latest high profile victim of the credit crunch, reporting Q3 losses of 726m Swiss francs.

GBP
In spite of poor UK Home data, the sterling strengthened against both the euro and the dollar as traders continued to price in a probable interest rate cut from the Fed.

USD
The dollar hit a new record low versus the euro and almost a 26-year low against sterling as investors remain convinced that the Fed will deliver a widely anticipated rate cut to limit damage to the US economy caused by problems in the housing sector. With house prices now also falling investors feel that a further easing of policy is now required to prevent the US economy from sliding into recession.

EUR
After hitting an all time high versus the dollar, the euro fell across the board as traders became concerned that there was still more bad news to come from the credit crunch as UBS Bank reported its first loss in five years. There is a growing consensus that further losses will limit the ECB's scope to increase interest rates, which is why the currency retreated.

JPY
The BoJ is expected to keep interest rates on hold at 0.5 per cent at its policy meeting and reiterate its belief that the economy is on track for modest but sustained growth. The Yen remains particularly weak, with traders continuing to exploit carry trades.

Commercial Foreign Exchange Travelex Malta (Free phone: 800 733 22) www.travelex.com/mt/