Emerging market currencies tumbled after officials in countries such as South Korea and South Africa warned markets that they stand prepared to take action to halt gains in their home currencies. The move comes despite recent G20 discussions where world leaders loosely agreed not to artificially manipulate currency markets. Baltic currencies such as the Swedish Krona continue to face pressure after central banks in both Sweden and Norway held interest rates this week and raised concerns over global economic prospects. In contrast, the New Zealand Dollar found support after the RBNZ held interest rates overnight but suggested more policy tightening is to come.

Sterling

Sterling remains supported after Q3 GDP figures reduced expectations that more quantitative easing is required to stimulate the UK economy. As a result, the pound moved away from recent record lows against currencies such as the euro.

US dollar

The US dollar again firmed across the board after some encouraging data followed media reports which suggested that the US Federal Reserve will adopt a less aggressive approach to increases in quantitative easing next week. A stronger US dollar is pressuring the apparently “overvalued” euro and Swiss franc after both currencies recently reached record high levels.

Euro

French consumer spending rose in September and this encouraging news, which was the only real data highlight for the eurozone, failed to really impact currency markets and the euro continued to dip. The euro, although still remains at strong levels, is suffering as investors scale back negative bets against the US dollar.

Japanese yen

The yen jumped to an eight month high against the dollar but later lost ground as Japan’s Finance Minister tried to tone down earlier comments suggesting intervention was unlikely, remarks that had prompted speculators to pile into the rise.

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