Daily currency report

The dollar rose broadly, rebounding from a 14-month low against the euro as falling stock and commodity prices prompted investors to lock in recent gains in other currencies. Traders were also reluctant to push the euro higher given the huge amount of bearish trades on the dollar, which suggests a near-term rebound in the US currency could be on the horizon.

Sterling

Sterling hit a one-week low against both the dollar and the euro as the fallout from Friday's worse than expected GDP figures continued. The economy had been forecast to grow in the third quarter but markets were shocked when preliminary figures in fact showed a contraction, leaving the UK mired in recession.

US dollar

The dollar remained weak for most of the session in what was a generally quiet day's trading all round. Initially the dollar had traded lower as equity markets improved. Revived optimism that the global economy is recovering spurred demand for higher risk assets reducing safe haven demand for the US currency.

Euro

The euro surrendered gains against the greenback, falling to session lows, as riskier assets such as US stocks pared gains while commodities fell.

Japanese Yen

Japanese Prime Minister Yukio Hatoyama pledged to consider ways to keep the country's ballooning debt in control over the long term, while protecting the weak from harsh economic competition. Markets seem to have backed the Japanese leader's comments as the yen rose overnight.