Daily currency report

The pound fell 0.3 per cent against the US dollar and 0.2 per cent against the yen and the euro in the first day of trading of the new year.

US dollar

The US markets were closed for bank holiday hence dollar movements were somewhat limited. Movements are expected today as the markets open up again for the first trading session of 2012.

Euro

The euro slipped to an 11-year low against the yen, before paring declines, on concern that the European debt crisis will hamper economic growth and destabilise financial markets as 2012 begins. The single currency weakened against the dollar as a report confirmed European manufacturing shrank for a fifth straight month in December. German Chancellor Angela Merkel said in a New Year’s speech she expects turbulence this year and will do everything to save the euro and end the region’s debt crisis. The Turkish central bank has intervened in currency markets selling the US dollar, which probably contributed to the small pick up in euro/dollar prices.

Travelex Global Business Payments Malta, freephone: 800 733 22, www.travelex.com/mt/