The dollar rally continued as the US Senate voted to pass the Treasury's proposed bail out of the US financial system. The sterling now sits at a two-week low versus the dollar, and the single currency is also feeling the pressure.

Sterling (GBP)

Britain's manufacturing sector shrank last month at the fastest rate since records began almost 17 years ago as levels of output, new orders and employment registered unprecedented declines. The disastrous figures will reinforce expectations that Britain has entered its first recession since the early 1990s and boost expectations that interest rates could be cut, particularly as price pressures start to ease.

US Dollar (USD)

The dollar climbed near a one year peak against a basket of currencies despite unexpectedly weak manufacturing survey data. The figure showed a fall from an estimated 50.0 to 43.5. However, the market seemingly shrugged off this data as all traders' attention was focused upon the outcome of the bailout plan.

Euro (EUR)

The euro fell to session lows as a result of growing concerns about the health of Europe's banking sector. Concerns about the health of the fifteen member bloc's banks have added to an already long list of worries about the outlook for the euro zone's economy.

Japanese Yen (JPY)

Uncertainty over the outcome of the current credit crisis is causing a great deal of volatility in yen trading at the moment. A resolution to the crisis in the form of a US bailout and some time to mend all wounds would help the yen lower as its status of being a funding currency for carry trades is restored. The current state of limbo has led to recent yen strengthening as investors continue to unwind risky carry trades.