The dollar remained the darling of the markets posting notable gains against a basket of currencies. An upbeat tone sounded by the Federal Reserve earlier in the week had already triggered a wave of confidence towards the greenback. US jobless claims came in higher than expected and this only had the effect of allowing the dollar to relish in its role as a safe haven currency, pushing it to fresh highs. The pound fell to two months lows against the resurgent US dollar.

Sterling

Sterling started the day on the defensive after retail sales disappointed. The pound lost ground as a result in particular hitting two months lows against the US dollar which was broadly stronger across the board.

US Dollar

The US dollar continues to soar, hitting key levels against a number of currencies. Despite keeping interest rates on hold, the Federal Reserve sparked a mad rush for the greenback by offering an optimistic outlook for the dollar and reiterating its commitment to have reversed the emergency lending measures, put in place at the height of the economic downturn, by the beginning of February 2010.

Euro

The euro's woes continued and although economic data was light, Italy did release its third quarter unemployment figures. These showed an increase of 7.8 per cent, slightly worse than analysts had feared with predictions of a 7.7 per cent. The numbers didn't help a euro which continues to stagger on worries about the health of some member nation's economies.

Japanese Yen

The Bank of Japan opted to keep interest rates on hold at 0.1 per cent. The decision was in line with market expectations as the bank has not moved rates in the year and the yen continued its recent downward trend.