Daily currency report

The pound rose versus the dollar and bounced from near-record lows versus the euro. Elsewhere, both the pound and the dollar gained support against the euro, after comments by the Luxembourg Finance Minister while the dollar got a further boost after Merrill Lynch reported a quarterly loss that was not as bad as some investors had feared.

Sterling (GBP)
The sterling climbed against some of the major currencies, as signs that financial companies will weather the credit crises, encouraged investors to buy higher-yielding assets. The sterling's renewed vigour, came on the back of speculation that the Bank of England will make an announcement of a plan to help end a log-jam in the money markets.

US Dollar (USD)
The dollar ended slightly up against the euro, after posting record lows in early trading. The bounce came after the Luxembourg Finance Minister claimed financial markets have misunderstood the Group of Seven's position on currency volatility.

Euro (EUR)
The euro eased off the accelerator against the greenback and the pound as it closed the day slightly down. The dip in the euro strength came after a comment from Luxembourg Finance Minister Jean-Claude Juncker, who claimed the euros advance was "undesirable", and his comment was interpreted as him telling the market that they should take seriously the warning about policy makers not being happy about the dollar's weakness and the euros strength.

Japanese Yen (JPY)
It looks like the yen is heading for its biggest weekly loss against the euro in seven months on speculation financial firms will weather credit-market turmoil, encouraging investors to buy higher-yielding assets funded in Japan.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/