The pound suffered yet again, losing ground against both the US dollar and the euro. Adding to the pound's woes is growing speculation that the Bank of England will cut interest rates by as much as one per cent when the monetary policy committee concludes its two-day meeting. Elsewhere, Australia's central bank cut its key interest rate from six per cent to 5.25 per cent in an attempt to boost the economy and avert a recession.

Sterling (GBP)

The pound shed over 4c against the US dollar with the move came in spite of British manufacturing PMI data for October coming in better than expected. The figures reinforced the view that the UK's recession will likely be long and protracted and has also solidified expectations for another 50 basis point interest rate cut from the Bank of England this week.

US Dollar (USD)

Bleak manufacturing figures from the eurozone and UK played up fears about a looming global recession. As a result, investors again chose to favour perceived "safe-haven" assets and currencies such as gold, the US dollar and yen, each of which saw strengthening across the board.

Euro (EUR)

There was more bad news from the eurozone as the PMI manufacturing data for October slipped to its lowest level ever. This data is the latest in a long list of dismal eurozone economic reports which have all but confirmed the 15-nation economy is already in recession and have cemented expectations for a 50-basis point interest rate cut.

Japanese Yen (JPY)

The yen rose against the Australian dollar and British pound as falling interest rates make it less attractive to buy overseas assets using funds from Japan. The yen has now appreciated 13 and 31 per cent against the US dollar and the euro respectively this year, prompting growing concern over the state of Japan's key export sector.