Sterling was up against a basket of currencies, most notably reaching a 19-month high against the euro. The pound had also hit eight-week highs versus the US dollar. The gains were all the more impressive as equity and commodity markets fell across the globe, which usually harms the traditionally risk sensitive pound. General sentiment towards the single currency soured as investors awaited the expiry of a large financing programme from the European Central Bank. As a result markets largely ignored a number of eurozone sentiment survey releases content instead to wait and see if European banks would be able to repay their loan responsibilities to the European Central Bank. In the US, the dollar had its own successes finishing up against both the euro and the Australian dollar. However, a mixed bag of economic data saw the greenback lose ground against the Japanese yen. A steep drop in US consumer confidence particularly unnerved investors.

Sterling

Sterling was able to hold on to gains against most currencies despite falling equity and commodity markets across the globe. The pound reached a 19-month high against the euro as investors shunned the common currency ahead of possible problems later this week. However, the pound found itself down against the Japanese yen which seemed to be the safe haven currency of choice on increased risk aversion.

US dollar

The US dollar saw mixed fortunes after an uncertain day in world markets. The greenback ended up against both the euro and Australian dollar, however, was down against both the pound and Japanese yen as mixed bag of data saw investors shun the dollar somewhat for the preferred sanctuary of the Japanese yen and Swiss franc.

Euro

The single currency found itself down against a basket of currencies. The euro was down against the US dollar and also hit its lowest level against the British pound. In addition, the euro dropped to all-time record lows against the Swiss franc and fell to its lowest level for eight and a half years against the yen as worries over the health of the eurozone financial system escalated.

Japanese yen

The Japanese yen found itself up against a basket of currencies which included the greenback, euro and even the pound. World stock markets took a big hit mainly due to the financial uncertainty in the eurozone.