The dollar posted its biggest gain against the yen in six weeks and also gained against the euro as the US Treasury stopped short of saying that China manipulates its currency and the Federal Reserve suggested it will keep raising interest rates.

GBP
The sterling slipped from a one-year high against the dollar set earlier and edged down versus the euro after the Bank of England said its growth profile was slightly weaker than the previous projection. Short sterling futures are aggressively pricing in rate hikes.

USD
As expected, the Federal Reserve raised its benchmark-lending rate by 25 basis points to five per cent. However, there was no clear signal from the Fed that the ongoing cycle of monetary tightening is finished.

EUR
German economic growth accelerated less than expected in the first quarter as the coldest weather in a decade hampered production. Gross domestic product, the value of all goods and services, increased 0.4 per cent from the fourth quarter, when it stagnated.

JPY
Economic data released yesterday reinforced market sentiment that Japan's recovery was powering ahead and could warrant a BoJ rate hike imminently.