The Japanese yen strengthened across the board whilst the pound and euro fell due to weak economic data in both countries. However, the greenback benefited from a return of risk aversion as traders fled back to US dollar dominated assets in the wake of weaker data from the UK and Europe. Elsewhere, the Canadian central bank kept interest rates on hold when the Bank of Canada met for its final meeting of the year.

Sterling

The pound slipped on deepening concerns over the UK's fiscal health, weak economic data relative to market expectations and the value of Royal Bank of Scotland shares which took a plunge during the trading session. Britain's lending needs loomed large as a report from credit ratings agency, Moody's Investors Services, on the fiscal challenges that triple-A rated countries' governments are facing sharpened the focus on the UK's fiscal position.

US Dollar

The dollar had a mixed day, however it ended trading higher as investors once again fled back into the US currency which is perceived as a safe-haven. This was triggered by soft manufacturing and industrial production figures in the UK as well as weaker than expected UK retails sales figures.

Euro

The euro fell against the dollar after concerns were raised about Greece's fiscal health as credit rating agency, Fitch, downgraded the country's credit rating to BBB+ from A- with a negative outlook. This was the first time in 10 years a major ratings agency has put Greece below an A grade, citing fiscal deterioration in the eurozone's weakest member as its main reason.

Japanese Yen

The Japanese yen strengthened against the majors as banking sector jitters continued to linger resulting in investors moving into safe-haven currencies such as the Japanese yen and the US dollar. The yen however rallied against the dollar and remained the stronger of the pair as the excitement regarding last Friday's robust US jobs report started to wear off.