Falling equity markets, record high oil prices and geopolitical tensions combined with high inflation and weak growth figures hurt sentiment around the globe. US officials attempted to stem the dollars decline by calling for a stronger dollar policy. It was a better week for the euro, which hit a series of monthly highs in the run up to the ECB's interest rate announcement which saw it raise interest rates by 25-basis points as forecast in a move that was seen as an attempt to keep a lid on inflationary pressures.

Sterling (GBP)

The declines in the FTSE weakened the local currency as shares suffered on weak corporate outlooks especially in the housing and construction sector. Mortgage approvals fell to record lows, a PMI construction survey fell to an all time low while services and manufacturing survey continued to paint a bleak outlook.

US Dollar (USD)

The greenback recovered somewhat as traders took profit on recent dollar weakness as the non-farm payrolls report was not quite as bad as some had feared. Nevertheless, the dollar remains close to recent lows against the other major currencies and could be vulnerable to further selling action as there remains very little incentive for investors to back the currency.

Euro (EUR)

The ECB raised euro area borrowing costs by a widely anticipated quarter percentage point to 4.25 per cent, but president Jean-Claude Trichet avoided any code words associated with more tightening, saying he had no bias. Mr Trichet's tone helped to knock the Euro off a two month high.

Japanese Yen (JPY)

The headline figure of the all important BOJ Tankan survey was better than expected, but declines in Asian equity markets continued to weaken the yen. Seasonal forces are weakening the yen as summer bonuses continue to be sent abroad in search of higher yields.