The yen and the dollar fell across the board as a recovery in the global stock markets prompted investors to lock in steep recent gains against the two currencies. These moves are perceived as being technical as there has been no major catalyst to alter the market's perspective on risk-taking, despite the fact the unwinding of leveraged trades from risky assets remains a constant necessity.

Sterling (GBP)

The sterling cut earlier gains against the dollar as a rally in European shares lost momentum, renewing anxieties that investors would return to shedding riskier assets and dump higher-yielding currencies. While the pound still traded above the six-year lows suffered against the dollar on Friday, it remained under pressure against major currencies due to the sharply deteriorating UK economy.

US Dollar (USD)

The dollar came under pressure while equity markets rebounded as investors sought out bargain stocks. Nevertheless, economic data releases continue to paint a depressing picture of the American economy. US consumer confidence plummeted to a record low in October due primarily to capitulating home values and the ongoing financial crisis that has left the Americans with qualms over both their jobs and the future.

Euro (EUR)

The euro recovered from the two-and-the-half-year low against the dollar as shares in Europe rose nearly four per cent enabling investors to secure recent gains. European Central Bank Governor argued the requirement for an interest rate cut from at its policy meeting next week. This need for an interest rate cut was boosted as falling inflation and food prices helped to cool German inflation for the third month in a row in October.

Japanese Yen (JPY)

The yen fell across the board due to resurgence in the global stock market enabled traders to lock in steep recent gains in the currency.