The pound remained on the back foot as anxieties still linger about the spectre of a global recession, with the UK vulnerable to a prolonged economic downturn. Elsewhere, the unprecedented de-leveraging of stocks, high yielding currencies and emerging market assets has enabled the Japanese yen to hit a 13-year peak against the greenback while the Swiss franc hit a record high against the euro.

Sterling (GBP)

The pound fell sharply due primarily to ongoing risk aversion as there still remain qualms over a global recession. Ultimately the UK is perceived to be particularly exposed to a prolonged economic downturn and it is these fears over the outlook for the UK economy that prompted further unwinding of carry trades and the pound fell against both the dollar and yen.

US Dollar (USD)

The dollar continued to hold on to gains secured as recession concerns continue to linger and traders still harbour the belief that the dollar is the best prepared to come out of the global crisis. There was another sell-off in Asian and European stocks and the greenback benefited from unprecedented de-leveraging and unwinding of riskier assets classes like stocks, high yielding currencies and emerging market assets.

Euro (EUR)

Eurozone M3 money supply growth fell to 8.6 per cent in September from 8.8 per cent in August and a record high of 12.7 per cent in November last year, adding to evidence that inflationary pressure are easing. In addition, French consumer confidence dropped in October to match a record low on anxieties that the global economic slowdown will prompt further loss of jobs, irrespective of which sector they worked in.

Japanese Yen (JPY)

Japan's retail sales dropped for the first time in 14 months in September as tumbling stocks and stagnant wages have ultimately discouraged households from spending.