Daily currency report

The sterling weakened against the dollar with investors drawn to the perceived greater safety of the US currency as they awaited progress of the US government's plans to boost the economy. The US Treasury finally rolled out a reworked financial rescue plan, worth possibly more than $2 trillion to mop up bad bank assets and revive consumer lending in a bid to stave off a deep recession. Attention will turn to the release of the UK unemployment figures and the Bank of England's quarterly inflation report, which will contain forecasts for economic growth.

Sterling

The sterling fell against the dollar, retreating from the previous session's three-week high as continued delays to a US bank bailout plan and stimulus package heightened investor wariness of risk.

US Dollar

The dollar firmed against most of its counterparts as the air of uncertainty ahead of the announcement of the expected bank rescue package kept demand for safe-haven assets like the dollar alive. The dollar briefly dipped against the euro and the yen as the US government unveiled a rescue plan to help the ailing banking sector.

Euro

The euro initially suffered as a result of a report from Japan's Nikkei business daily that Russia's banks submitted a proposal to the government to postpone payment of up to $400bn in corporate debt to foreign bondholders. Russian officials quickly dismissed the report that the single currency remains particularly vulnerable to such news from emerging economies in Ventral and Eastern Europe, given its disproportionate exposure to the region.

Japanese Yen

The yen was one of the winners following the US government bail out plan, as the resulting uncertainty saw a flight to less-risky assets such as the yen