The dollar was heavily sold off, coming under pressure as the price of crude oil hit a new record high and Goldman Sachs predicted more significant write-downs from Citigroup as a result of the credit crunch.

Sterling (GBP)
The pound ended higher against the dollar, but slightly down versus the euro as financial markets focused on testimony given by the Bank of England Governor who attempted to sooth market worries by stating that he was confident that inflation would fall back to within the Bank's two per cent target, however this will happen after the rising cost of food and energy would most probably take inflation over four per cent in the short term.

US Dollar (USD)
The market continued to sell the dollar, sending the currency to its lowest level in three weeks versus the euro while falling to a near two-month-low against the sterling. Sentiment for the greenback remains soft following Wednesday's FOMC policy statement which tempered market expectations for an imminent rate hike by the Federal Reserve.

Euro (EUR)
German import prices helped the euro gain versus the dollar after a rise of 2.4 per cent last month, the strongest gain in 18 years. Unsurprisingly this jump was due largely in part to the surge in oil prices. With the European Central Bank interest rate decision exactly a week away, the ECB will look to raise interest rates.

Japanese Yen (JPY)
The yen remains on a weak footing across the exchanges in spite of government data showing that Japan's annual consumer inflation accelerated in May, hitting a decade high on surging energy and food prices. Industrial production also rebounded in May, but not by enough to dispel concerns that Japan's economy is facing a slowdown.

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