For a second day in a row the dollar was the biggest winner after the Bank of England cut interest rates by 25 basis points and the eurozone kept their rates on hold. The euro nevertheless sank after European Central Bank President, Jean-Claude Trichet, gave a slightly less hawkish account of the ECB's stance on monetary policy. The sterling's losses put it at two-week lows against the dollar and the yen as markets looked ahead to further rate cuts from the BoE.

GBP
The pound extended losses and plunged to a two-week low, after the BoE rate cut by 0.25 per cent. Initially the pound pared losses against the dollar and the euro, however, investors priced in further rate cuts of at least 75 basis points by the end of this year which plunged the sterling to fresh lows.

USD
The dollar ended the session up across the board following the interest rate announcements from both the UK and Europe. The dollar's gains came in spite of further bad news emerging from the world's largest economy.

EUR
As expected, the European Central Bank kept rates on hold at four per cent as Jean-Claude Trichet stressed the risk of slower growth alongside inflation pressures. The euro has come under pressure in the past couple of sessions amid growing signs the economy in the eurozone is faltering.

JPY
G7 finance ministers and central bankers will meet in Tokyo to discuss the economic and financial impact of the recent US sub-prime mortgage crisis and hopes to calm markets with candid talks at this weekend's meeting.

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