The dollar emerged in a position of strength as it capitalised upon recent gains and moved to a three month high against the euro. It also eradicated the previous losses suffered against the pound as the Federal Reserve announced, after keeping their interest rates on hold, that the economy is gaining momentum after the recession.

Sterling
The pound cemented recent gains against the euro, building upon a one month high hit earlier in the week. Sterling also rose against the dollar after data unexpectedly showed the number of Britons claiming jobless benefit fell in November.

US Dollar
The Federal Reserve was optimistic, albeit guardedly, that the battered US job market was improving, but it repeated a vow to keep interest rates extraordinarily low for "an extended period". In a unanimous decision, the US central bank left benchmark overnight rates on hold in a 0 to 0.25 per cent range, as financial markets had expected.

Euro
The euro continued to suffer against the dollar and the pound as investors reacted to the positive tone of the Federal Reserve Monetary Policy Committee Meeting. The euro plummeted to a three-month low against the dollar and remained at a 1 month low against the pound.

Japanese Yen
The Japanese National Minister, Naoto Kan, said on Thursday that he welcomed the dollar's rise against the yen as many Japanese companies assumed weaker levels in their business plans. He further stated that the yen was in a weakening trend.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/