It's all about the dollar on the exchanges as it powered to another 21-month high against the pound and a six-month high against an array of different currencies.

Sterling (GBP)

The sterling held steady against the euro but lost more ground versus the dollar as British economic data continues to disappoint. According to a report from the British Retail Consortium, like for like sales in July were down 0.9 per cent from a year earlier, while the Royal Institute of Chartered Surveyors reported that house prices fell again.

US Dollar (USD)

The dollar traded close to a high against the euro on speculation tumbling commodity prices will give a boost to the world's largest economy. The US currency was also close to a seven-month high against the yen as crude oil traded near a 14-week low at around $113 per barrel. Just how far this dollar surge will go is, as yet, unclear. Nevertheless investors are willing to back the currency, thus adding to its momentum.

Euro (EUR)

The euro now looks set for a sustained fall, dropping to a six-month low against the dollar and easing slightly against the pound. Ever since European Central Bank chief Jean-Claude Trichet warned that the eurozone economy is slowing faster than expected the euro has come under heavy selling pressure, convincing some economists that its seven-year winning streak against the dollar may finally be coming to an end.

Japanese Yen (JPY)

Japanese annual wholesale price inflation jumped to 7.1 per cent in July. The news has added to fears that high energy and commodity costs are pushing the world's second largest economy into a recession. On the exchanges, however, the yen has performed relatively well, posting significant gains versus both the sterling and the euro.