Daily currency report

Sterling fell against a basket of currencies as the Bank of England minutes from November's meeting revealed a three-way split, the majority voting in favour of a £25 billion increase to the Bank's asset purchasing programme but one member opting for no action and another voting for an extra £40 billion injection. Elsewhere, the euro came under acute selling pressure on the back end of data released in the United States. Mainland data from the eurozone was thin on the ground with only a current account deficit being revealed.

Sterling

Sterling fell against the euro and the dollar during trading after the Bank of England minutes revealed a three-way split in the decision taken earlier this month to extend quantitative easing by £25 billion. The members were, however, unanimous in the decision to keep interest rates at a record low of 0.5 per cent. The bank has pumped billions into the economy to try to stimulate demand.

US dollar

The dollar strengthened against a basket of currencies as dealers took profits on the currency's biggest rise in three weeks, with fresh data doing little to alter the view that US interest rates will remain at record lows well into 2010.

Euro

The euro came under pressure after the data in the United States was released leaving the single currency down against sterling and the US dollar. The euro saw no real movement on the back of September's current account data.

Japanese Yen

Japan's benchmark Nikkei share average fell 1.3 per cent to a four-month closing low with the nation's biggest bank Mitsubishi UFJ Financial group sliding after announcing a massive fundraising. This was the Nikkei's lowest close in four months and the second consecutive fall this week alone.