The US dollar lost modest ground against its major peers. Investor preference for riskier assets lifted the commodity-linked Australian and Canadian currencies against the greenback

Sterling

There has been very little to catch up on for traders in London other than speculation over what will be in store for the global economy come 2012. Looking ahead, the pound will be hoping to build on its advance against the euro despite slipping slightly from an 11-month high.

Euro

The euro carved out a tiny gain against the dollar, benefiting from generally positive risk sentiment.

US Dollar

The dollar fell slightly in thin holiday trade. Most European shares were up modestly, giving investors an excuse to favour riskier assets at the expense of safer ones like the greenback. But helping underpin the dollar should be the roll the US economy has been on to end the year. In recent weeks the long-struggling job market has made positive strides with weekly unemployment claims at their lowest level since 2008.

Japanese Yen

The yen caught a modest bounce against the dollar. The yen is on pace to appreciate four per cent against the greenback in 2011, which ranks tops among the major currencies. The yen has found decent underpinning this year from safe-harbour flows on worries about Europe’s still-unresolved debt crisis.

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