The pound fell, retreating from initial gains made against the dollar after the central bank held interest rates at 0.5 per cent, as political economic concerns kept the UK currency under selling pressure. Meanwhile, the euro lost ground as the European Central Bank, as expected, left its main lending rate on hold at one per cent. Elsewhere, the dollar continued to gain support on lingering concerns over Greece's fiscal problems and anxiety over the US jobs report. The yen weakened for a second day against the dollar and declining against the euro on speculation the Bank of Japan will step up credit easing measures to stave off deflation.

Sterling
The pound fell against the dollar, approaching the lowest level in 10 months, after the Bank of England kept the main UK interest rate at a record low. Sterling's gains were limited after the announcement as the boe signalled that the door for further quantitative easing was still wide open should the need arise.

US Dollar
The dollar rose against the yen and was supported versus major currencies as investors grew cautious about selling the greenback too far.

Euro
The euro lost ground against the dollar as comments coming from the European Central Bank's monthly meeting reinforced the view that interest rates will remain low for the foreseeable future.

Japanese Yen
Japan announced that it would look to increase its borrowing limit for foreign exchange intervention for the first time in six years, fuelling speculation that the government will look to intervene in currency markets to prevent any further appreciation of the yen.

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