The dollar fell across the board as investors moved away from the safe-haven dollar and looked for higher returns by betting on higher yielding assets. A report showed that US consumer spending rose for the fifth month in a row which also contributed to an element of risk appetite. Sterling benefited from the broad improvement in investors' appetite for risk despite mixed data on the state of the British economy. Last week's debt-plan for Greece was complimented by a seven-year sale of government bonds to raise €5 billion euro to help lift the country out of debt and bolster the euro.

Sterling

Sterling strengthened against the US dollar as investors unwound defensive positions in the greenback in search of higher returns in riskier assets and currencies. However, the gains the pound made were capped as political uncertainty still persists ahead of the UK election expected in May.

US dollar

The US dollar lost ground as investors' appetite for risk returned and the dollar became less attractive as a safe haven. Recently the dollar has been benefiting from its safe-haven appeal as political jitters surrounding the indebted Greek and UK nations kept investors on edge.

Euro

The euro trimmed gains versus the dollar, pulling away from a session high after Greece's launch of a highly-anticipated sovereign bond issue highlighted its need to refinance its gigantic debts. Greece has raised €5 billion by selling government bonds, to secure more funds to help pull the country out of its debt crisis. The seven-year bonds were sold at a yield - the interest rate investors are paid on government bonds - of 5.9 per cent.

Japanese yen

The Japanese yen fell slightly as risk aversion subsided on the back of the Greek bailout plan's finalisation. Investors pulled out of safe haven currencies, albeit at a slow pace, to invest in higher yielding currencies such as the Australian dollar.