Daily currency report

The global financial crisis once again took centre stage as financial markets continued their recent meltdown. With American business closed to observe the Columbus Day holiday, trading will likely be muted. Nevertheless, the big news came from the UK where the Royal Bank of Scotland looks set to be nationalised as the chancellor injects £20 billion of taxpayer's money to save the ailing banking giant.

Sterling (GBP)

The sterling was dumped by traders and investors and finished trading just above five year lows against the US dollar. Most investors are so worried that the global financial system meltdown and steep economic downturn will continue that they are moving funds out of riskier assets and holdings for safer options such as gold and the perceived safe haven currencies of the yen and US dollar.

US Dollar (USD)

The dollar was the biggest winner on the currency markets as oil prices tumbled to below $80 a barrel and sentiment weighed on the pound.

Euro (EUR)

The single currency advanced versus the dollar snapping two days of losses as the leaders of the 15-bloc union agreed to guarantee bank borrowing and prevent failures that would further disrupt financial markets. Once again traders will look closely at comments from any central bankers this week as the financial crisis continues to be the main driver in global financial markets not just the foreign currency world.

Japanese Yen (JPY)

The yen continued to strengthen as investors began selling some of their $1.3 trillion in overseas assets and bringing money home over fears of the global slump in equities getting even worse.