In another calm currency trading day, trading was characterised by the fall in stocks for the first time in three days, led by commodity companies, the best-performing industry this year. News of particular note in an otherwise bleak day for trading was the news that the dollar climbed to a two-month high against the yen.

Sterling

The British pound traded within a 10th of a cent of an 11-week low against the dollar on concern that the nation will have difficulty cutting debt while recovering from the longest recession on record. Sterling weakened against 15 of the 16 most traded currencies after Prime Minister Gordon Brown said that Britain's effort to trim its budget deficit must be "sensible" and "fair" to keep the economic recovery alive. The country's AAA rating with Standard & Poor's has a "negative" outlook and Moody's Investors Service said that the UK may "test the Aaa boundaries".

US Dollar

The dollar climbed to a two-month high against the yen on speculation the Federal Reserve will withdraw stimulus measures as the economy recovers, pushing market interest rates higher. The dollar rose versus the euro, set for its first monthly advance since June, before a report economists said will show companies in the US expanded in December for a third consecutive month. Currencies of raw-material producers including the Canadian and Australian dollars weakened as commodity companies led declines by stocks.

Euro

In another day of choppy trading, stock markets in Europe fell on the back of commodity shares as companies are recollecting their profits after a very good year.

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