The pound fell for the eighth straight day to a 12-year low against a Bank of England trade-weighted index of currencies and it hit its lowest level against the dollar since April 2006. Elsewhere, the euro plumbed an eight-month low against the dollar, after a fall in eurozone retail sales. The dismal figures helped the dollar extend its winning streak and the US currency soared against most of the major traded currencies as investors increasingly put faith in the US unit amid a deteriorating global economic backdrop.

Sterling (GBP)

The sterling continued to slide, crashing more than a full cent against the dollar to its lowest level since April 2006, before recovering slightly after figures showing an improvement in the UK services sector gave market players an excuse to buy the currency back at relatively cheap levels, even though the figures showed the sector is still contracting.

US Dollar (USD)

The US dollar continued to surge, hitting its highest level against the euro since January. Extending its recent run on growing expectations the American economy would outperform the European. The dollar briefly augmented its gains versus the euro, after a government report showing US factory orders rose more than expected in July, adding to signs of resilience in the US economy.

Euro (EUR)

The euro fell to the lowest level against the dollar in more than seven months, after European retail sales and business investment dropped and crude oil extended its decline. In contrast to the US, eurozone figures underscored a weakening economy in the region. Retail sales in July fell and data confirmed that the eurozone economy shrank in the second quarter.

Japanese Yen (JPY)

The yen rose for a fifth day against the euro and increased to a two-year high versus the New Zealand dollar.