A report released showed that the Reserve Bank of Australia intervened in markets to buy a record amount of Australian dollars in October in a bid to prop up the currency's value. The sterling climbed higher against both the euro and the dollar as the Bank of England's monetary policy committee released their latest meeting minutes, which showed they were willing to cut interest rates even more aggressively than the 1.5 per cent.

Sterling (GBP)

The sterling reacted to the publication of the minutes from the Bank of England's last policy meeting by rallying against both the euro and US dollar. However, after the US Federal Reserve downgraded its growth forecasts for the US economy, stock markets fell sharply as traders fretted over global growth prospects. This, in turn, had a knock-on effect on the sterling, as investors switched capital into "safe" asset such as US treasury bonds.

US Dollar (USD)

It was the US dollar's turn to come under sustained pressure as the Federal Reserve downgraded its growth forecasts and signalled that further interest rate cuts were a probability. Elsewhere, separate data showed that US consumer prices dropped by a record one per cent in October compared with the previous month, as fuel costs fell for a third month in a row.

Euro (EUR)

The euro came under pressure with no significant economic releases to offer the currency any support. European Central Bank member Lorenzo Bini Smaghi indicated that there is plenty of scope for interest rate cuts as inflation is dropping and stated that if the rate cuts do happen, it is imperative that banks pass the cut on to consumers, a problem facing most governments and central banks.

Japanese Yen (JPY)

Investor sentiment and risk aversion seem to be directing the yen at the moment and, as such, the currency remains strong.