The dollar dropped to a 15-month low against a basket of currencies as generally upbeat US economic data and gains in world stocks eroded the greenback's safe-haven appeal. Sterling was able to make gains against the dollar but fell short against the single currency following the modest scale of an upward revision to the UK gross domestic product that showed the economy was still in recession in the third quarter. However, late trading has seen the news that the UK economy contracted by -0.3 per cent, derailing the pound, causing it to lose its gains against the dollar whilst falling to one month lows against the single currency. It was the single currency that made the headlines by hitting a 15-month high against the greenback. With no data of note from the eurozone, risk appetite and investor demand bolstered the euro.

Sterling

Sterling jumped against the dollar helped by comments made by the Bank of England Governor, Mervyn King, however, they were later capped by the modest scale of an upward revision to the UK gross domestic product that showed the economy was still in recession in the third quarter.

US Dollar

The dollar hit a 15-month low against a basket of currencies after Federal Reserve minutes showed policymakers saw the US currency's recent decline as "orderly". Traders proceeded to dump the dollar across the board, pushing it to a 10 month low against the yen, as the minutes reinforced the view US interest rates will stay, essentially, at zero until around mid 2010.

Euro

The single currency had a great day against the greenback hitting a 15-month high. It was more a case of dollar weakness rather than any real euro strength.

Japanese Yen

The dollar tumbled to a 14-year low against the yen and struck a one-and-the-half-year low against the Swiss franc, extending its broad slide on ultra-low US interest rates, even as Japan signalled it had no plans to step in to stem the yen's rise.