A combination of troubled stock markets, a better than expected German Centre for European Economic Research index and disappointing US housing data all helped to dent the dollar's confidence.

Sterling (GBP)

The last Bank of England policy meeting left interest rates on hold while current inflation levels, are at 4.4 per cent compared to a target of two per cent. The sterling in on the back foot as markets remain concerned about the outlook for the UK economy.

US Dollar (USD)

The environment for the US housing market remains difficult, with data showing housing starts and permits coming in weaker than expected. Single home sales, which constitute the bulk of new housing, were especially weak, with the annualised rate at its lowest level since January 1991.

Euro (EUR)

German investor sentiment bounced back due to a drop in oil and energy prices but failed to dismiss concerns that Europe's largest economy risks slipping into recession by the end of the year. The German economic slowdown is likely to last into next year as the fall in oil prices and the strength of the euro is unlikely to continue.

Japanese Yen (JPY)

The Bank of Japan left interest rates unchanged at 0.5 per cent in a unanimous decision. The world's second-largest economy shrank at an annual 2.4 per cent pace in the second quarter, as decade-high inflation deterred spending and a global slowdown dented exports. A Bank of Japan statement said that the latest lowering of its economic assessment will not directly lead to an interest rate cut but with the shrinking economy its main focus, the Bank of Japan is on guard against rising prices.