Sterling rose to a seven-week high versus the euro and a six-week high against the dollar on robust UK data however structural problems facing the UK's economy are still expected to hamper gains in the mid-term. In the US, the Greenback fell further as wholesale sales and inventories both posted increases in February, boosting investor risk appetite.

Sterling

Sterling rose to a three-week high against the US dollar and seven-week high versus the euro following the news that UK producer output prices for March came in stronger than expected. British factory gate inflation had risen at the fastest pace in 16 months, driven by the surge in the cost of oil and other imported goods.

US dollar

The US dollar found itself on the back foot against both the euro and the pound. The greenback hit a 6 week low against the pound as UK data impressed. The dollar was also down against the single currency following the rumours that the EU and IMF will come to the aid of Greece with a €25 billion lifeline. The news had the effect of reducing concerns over Greece's ability to finance and service its debts in the coming months.

Euro

The euro was down against the pound, hitting a seven-week low. The single currency rose slightly against the greenback and Japanese yen as speculation grew Greece may soon receive help to tackle its debt crisis, boosting investors' appetite for risk. Stock markets worldwide rose and Greek bond yields retreated after European Union President, Herman Van Rompuy, said that the EU stood ready to help if asked and a euro-group meeting in mid-April would find a solution for any remaining Greek aid problems.

Japanese yen

The yen slipped against a basket of currencies as a rising appetite for risk encouraged investments in higher yielding assets funded by cheap borrowing in the Japanese currency. Investors also considered the market may have gone too far with the yen's rally earlier in the week on expectations of a shift in China's currency policy.