The Swedish central bank cut its key interest rate to a new record low of 0.5 per cent. There were also rate cuts from the Bank of Canada, who cut the cost of borrowing to 2.25 per cent and the Indian central bank who brought the rate down to 4.25 per cent.

Sterling

The pound rose against all the other major currencies as UK inflation data suggested that the British economy had not yet fallen into deflation. British annual consumer price inflation came in at 2.9 per cent in March, its weakest rate in the last 12 months, but still well above the Bank of England's two per cent target.

US Dollar

The US dollar eased back against a stronger pound, but held steady versus the euro as investors continued to reassess their outlook for the global economy. A strong earnings report from UK retail giant, Tesco, as well as a persistently high core inflation figure, also from the UK, helped to assuage investor fears.

Euro

The euro recovered from a one-month low against the greenback. Although the news was encouraging, the benefits for the single currency are likely to be short-lived. The fact remains that markets remain unconvinced by the European Central Bank's relative inaction in the face of the global slowdown, and will be looking for much more decisive action before opting to support the euro in any significant way.

Japanese Yen

The Japanese yen remains well supported across the exchanges in spite of data that revealed Japan's first annual trade deficit in 28 years. Exports in the year to March were down 16 per cent from the previous year, and total exports in February and March were half of what they had been a year earlier according to official government data.