American PPI data revealed a surprisingly big jump in core prices thus reviving expectations for the central bank to raise rates to five per cent by May. The Bank of England is set to release the minutes of the MPC's March meeting, and Chancellor Gordon Brown delivered the government's 2006 budget.

GBP
Inflation data released offered nothing for the pound ahead of the release of the Bank of England's minutes. The impact on sterling, following the UK Budget, is likely to be minimal, since it is expected that growth forecasts and tax rates will remain relatively unchanged.

USD
The US dollar held on to its gains as traders felt more confident the Federal Reserve would keep pushing up overnight interest rates beyond next week's monetary policy meeting.

EUR
The euro slipped back as it suffered due to a stronger US dollar. Nevertheless, the eurozone seeks to improve, as an ECB governing council member was quoted as saying that the region should expand close to its potential growth rate of two per cent this year.

JPY
Yen watchers are staying alert to the incoming days' developments surrounding the US Senators visit to China to examine Beijing's progress in instilling currency reform, namely, a revaluation in the yuan against the dollar.

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