Last week currency markets were mainly driven by fear, which helped to lift the dollar as investors fled back into the perceived safe haven currency. Also, soft economic data and a series of events continued flows into safe havens and saw the Swiss Franc rise to record highs versus the euro. The events included a delay in the resolution on how to deal with Greece's mounting debt, a weaker than expected US five-year bond auction, and a downgrade in Portugal's sovereign debt.

Sterling

The pound declined for a second consecutive week against the dollar on concerns the recovery has yet to take hold and as investors bet the government isn't acting fast enough to reduce the budget deficit.

US dollar

The dollar strengthened against a basket of currencies early last week making its biggest quarterly gain versus the euro since 2008, as European leaders' struggled to forge a plan to bail out Greece. This, in return, pushed investors towards the perceived safety of the greenback. Also trade tensions between the US and China heightened when Senators elected to push for the country to be called a currency manipulator in the Treasury's mid-April report.

Euro

The euro strengthened against both the dollar and the pound after eurozone leaders finally agreed a financial aid package to help debt-laden Greece. The leaders agreed to provide €22 billion should Greece run into difficulties borrowing money to service its high debt levels. Shortly after the news, the euro rose by more than one cent versus the dollar before falling back slightly.

Japanese yen

The yen fell for a fourth consecutive day versus the euro, the longest losing streak in five weeks, as signs the global economic recovery is gathering momentum boosted demand for higher-yielding assets. Japan's currency weakened against 15 of its 16 major counterparts before reports this week that economists said will show the US job market is improving and Australian retail sales rose.