Daily currency report

The dollar slipped after a draft communiqué from G20 leaders announced unconventional economic stimulus measures would remain in place for some time to come. Sterling hit month lows against the dollar, euro and yen as traders continued to dump the UK currency, while the euro continued to make gains against both the greenback and the pound, and high yielding currencies such as the Australian and New Zealand dollars also recovered losses against the greenback.

Sterling

Although sterling has recently managed to hold onto positive levels against specifically the US dollar; sterling fell to four-month lows following the US Central Bank's announcement that they are looking to scale back their quantative easing measures, as well as Geithner's announcement that a strong US dollar would look to aid a recovering US economy.

US Dollar

The dollar edged lower against the euro after data showed orders for US durable goods fell 2.4 per cent in August, confounding expectations for a modest increase. The data added to lingering concern about the health of the US economy. The greenback fell to seven-and-a-half month lows beneath the key yen level as the yen rallied off the back of news that market intervention to diminish recent yen rises might not be enacted as immediately as once feared.

Euro

The euro has maintained its upward trend against a weak pound, but has taken back losses against the US dollar.

Japanese Yen

The yen jumped to an eight-month high against the dollar but later lost ground as Japan's Finance Minister tried to tone down earlier comments suggesting intervention was unlikely, remarks that had prompted speculators to pile into the rise.