Daily currency report

The US dollar continues to garner support across the exchanges as the perpetual slew of worrisome economic and financial news continues to stoke fears that the global crisis is far from over. In the UK, Alistair Darling said that the Bank of England could this week start buying assets with newly created money to boost the money supply and economy. The European Central Bank will also hold a rate-setting meeting, where it is expected that they will cut rates by 50 basis points to 1.5 per cent.

Sterling

Sterling spent most of the session mired close to a five-week low against the Greenback and a two-week low against the euro as the lack of risk appetite kept the pound on the defensive. However, the Nationwide's consumer confidence survey was released and has provided a degree of support for the pound.

US Dollar

The dollar rose against the yen, euro and sterling as Federal Reserve chairman Ben Bernanke called for bold government action to pull the economy out of recession, even if it means a surge in federal debt. Some analysts said that was good for the dollar because it suggested US authorities would do whatever it takes to help the economy to recover.

Euro

The euro weakened to three-month lows against the US dollar and gave up its recent highs against sterling even though EU policymakers assured markets that authorities would come to the aid of member states before they would have to turn to the International Monetary Fund.

Japanese Yen

The Japanese yen begins the session close to a four-month low versus the US dollar as confidence in the ability of the world's second largest economy to weather the current economic storm continues to dwindle.