The dollar has strengthened against the euro and yen, but fallen against the pound ahead of a key interest rate decision to be made by the Bank of England later today.

Japan's currency dropped to 120.02 yen per dollar while the American currency weakened against the pound at $1.9941.

The dollar's fluctuations in price came as a result of the decision by the Federal Reserve to hold interest rates. Meanwhile, the Bank of England is expected to raise interest rates today from 5.25 per cent to 5.5 per cent.

Recent data from has shown that the high street was active in April, while consumer confidence in the UK reached its highest level in six months.

In addition, a further rates decision is to be made today by the European Central Bank, but it is widely thought that the bank may keep interest rates stable. This, however, may signal that a rise is on the cards for June.