There is no end in sight to the market turmoil as UK banking shares took a battering on the stock exchange. In response to the problems, the UK government is expected to introduce measures that will use £50 billion of taxpayers' money to take major stakes in high street banks in a last ditch attempt to restore confidence in the financial system.

Sterling (GBP)

The sterling fell across the board after Royal Bank of Scotland became the latest major institution to appear to be on the verge of collapse. The pound had hit a fresh two-and-a-half-year low against the US dollar, leaving it down more than 11 per cent in the year so far. Shares in Britain's banks tumbled and investors dumped the pound as the latest wave of concerns about the health of the UK's banking sector reinforced expectations for aggressive policy easing from the Bank of England.

US Dollar (USD)

Alarm over the health of leading US banks sent Wall Street share lower for a fifth successive day in spite of a broad hint by Federal Reserve chief, Ben Bernanke, that an interest rate cut could be imminent.

Euro (EUR)

The single currency consolidated close to a 14-month low against the dollar although the outlook for the euro remains unclear. The ongoing meeting of eurozone finance ministers in Luxemburg is not likely to yield any unified measures to deal with the crisis gripping financial markets. At this point, an interest rate cut by the European Central Bank would likely support the euro as it would demonstrate that policymakers are not completely disconnected from the grave economic realities facing their economy.

Japanese Yen (JPY)

The yen surged breaching key levels against the dollar for the first time in six months, also advancing to its strongest in three years versus the euro, after a plunge in Asian stocks prompted investors to reduce holdings of higher-yielding assets funded in Japan.