The euro fell to fresh one-year lows against the rising US dollar after the European Central Bank decided to leave interest rates on hold in spite of growing pressure to ease the cost of borrowing. The credit crisis still continues to dominate headlines, with a vote on the US Treasury's recue plan expected in the US House of Representatives.

Sterling (GBP)

The sterling again lost ground against the US dollar, but made gains versus the euro as the economic outlook for Britain appears to be still deteriorating. The Bank of England's quarterly credit conditions survey showed a bigger than expected decline in credit lines to companies, a sharp decline in demand for mortgages and banks expected defaults on all lending to increase.

US Dollar (USD)

The greenback closed the day up against both sterling and the Euro in spite of data that showed US factory Orders posted the sharpest monthly contraction since October 2006. However, persistent weakness in the euro helped the greenback stay close to multi-month highs against a basket of currencies.

Euro (EUR)

Very much as expected, the European Central Bank opted to leave interest rates unchanged at 4.25 per cent. Immediately after the announcement, markets remained muted, and it wasn't until the press conference in the aftermath of the announcement that it became clear that the bank is beginning to alter its stance.

Japanese Yen (JPY)

The Nikkei average fell 1.9 per cent to a three year closing low for its worst week in more than a year. Growing fears about the worsening global financial turmoil and weakening exports will likely prompt the Bank of Japan policymakers to keep interest rates on hold and focus on risks to an economy on the brink of recession.