The euro reached a new all-time high versus the US dollar, after European Central Bank governing council member, Christian Noyer, said policy makers will act to restrain consumer prices if inflation doesn't slow while the sterling gained versus the dollar and euro after Bank of England MPC member, Tim Besley, said a plan to ease mortgage market worries will allow policymakers to focus on controlling inflation. Elsewhere the Canadian dollar fell against most of the major currencies as the Bank of Canada cut the target-lending rate by 0.5 per cent.
Sterling (GBP)
The sterling rose across the board, approaching a two-week high against the dollar after a Bank of England policy maker welcomed the bank's plan to free up market liquidity as a way to keep the BoE focused on inflation risks.
US Dollar (USD)
After initial gains in the opening session, the dollar was continually under pressure also reaching record lows against the euro. Data out in the US included a fall in existing house sales, indicating struggle in the housing market and record oil prices which touched highs of $119.90pb for light sweet crude and $116.75 a barrel for London's Brent crude oil.
Euro (EUR)
The euro reached its highest ever level against the US dollar due to comments by European Central Bank governing council member, Christian Noyer, who said that rates would be adjusted to make sure inflation falls below two per cent in 2009.
Japanese Yen (JPY)
The Japanese yen continued its rise against the US dollar, as investors ushered in positive economic data from the world's second largest economy.