The sterling lost the majority of the gains against most of the major currencies, particularly against the US dollar and the euro.

Sterling (GBP)

The news that the Chancellor, Alistair Darling, has backed the Bank of England's £50 billion plan to help ward off the worst effects of the credit crisis could not prevent the pound from sliding down in the currency market. Also weighing on the sterling was the news that Britain's second largest bank, the Royal Bank of Scotland, is set to ask shareholders for extra cash to shore up its finances.

US Dollar (USD)

The dollar fell against a basket of six major currencies and to a near record low against the euro after the Bank of America dampened investors' initial optimism with weaker-than-expected profits. The Bank of America Corp, the second largest American Bank, reported a fall in its first quarter profits due to write downs and rising credit losses.

Euro (EUR)

The euro surged due to hawkish comments emanating from the European Central Bank who reiterated their concerns that inflation has accelerated, increasing chances interest rates will stay at a six-year high at four per cent. The last reading of inflation came in at 3.6 per cent - way above the bank's official two per cent target.

Japanese Yen (JPY)

The yen rose for the first time in seven days against the euro, as investors pulled the plug on their carry trades after the largest retail bank in the US posted disappointing results. The news has helped fuel concerns that the credit crunch still has further to run.