Riskier currencies suffered further losses against safe haven rivals with continued nervousness over the health and pace of the global economic recovery supporting risk aversion. As a result, sterling fell to five week lows against the US dollar, the euro fell to lifetime lows against the Swiss franc and the Japanese yen continued to trade close to 15 year highs against the US dollar.

Sterling

Sterling came under further pressure from weaker global sentiment and increasing nervousness heading into this Friday’s key US unemployment data. As a result the currency fell to five week lows against the US dollar and came close to three week lows against the euro. UK mortgage approvals encouragingly picked up but did little to inspire sterling which traded off broader market developments.

US Dollar

The US dollar reached eight and a half month lows against the Swiss franc and continues trading close to 15 year lows against the Japanese yen. Weaker global sentiment and a slowing US economy is keeping the US dollar under pressure from its safe haven rivals.

Euro

Despite reaching record lows against the safe haven Swiss franc, the euro did manage to post gains against sterling and the US dollar following better than expected unemployment data from Germany. German unemployment fell by 17k and the unemployment rate held steady at 7.6 per cent. This was enough to push the single currency higher despite soft eurozone HICP inflation data which came in line with expectations at 1.6 per cent, and eurozone unemployment which showed levels continuing at 10 per cent as expected.

Japanese Yen

The Japanese yen continues at stronger levels despite recent action from the Bank of Japan to stem the currency’s rise. Concerns over the health of the global economic recovery is keeping demand for the safe haven yen supported with the currency continuing to trade close to 15 year highs against the US dollar and nine year highs against the euro.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/