Sterling fell to near one-month lows against the euro this morning on concerns about the country's fragile economic outlook. The Japanese yen turned volatile very suddenly as the Bank of Japan held an unscheduled special monetary policy meeting. In European hours, focus will be on German unemployment figures and Swiss GDP later today.

Pound Sterling – UK Markets

The pound hit a session low of 91.51 pence per euro this morning, closing in on Monday's low of 91.54 pence after an unexpected fall in British consumer confidence data. However, UK currency was little changed against the dollar at USD1.64, as concerns eased about the fallout from Dubai's debt-related problems and UK Nationwide House Price Index came in stronger than expected. Bank of England policymaker Adam Posen is scheduled to speak later today.

US Dollar – US Markets

The dollar hit a high of 87.50 against the yen this morning and the pair has stayed in a tight range as stocks and commodities consolidate. The greenback currently trades at 0.609 against the pound and 0.665 versus the euro.

Euro – European Markets

The euro was up 0.2% at 91.35 pence earlier this morning to take advantage of the pounds frailties. The single currency hovered around the 1.50 mark against the US dollar overnight and is currently trading at USD1.501.

Other Currencies – Highlights

The Japanese yen slumped against a host of major currencies after the Bank of Japan announced an unscheduled monetary policy meeting. Yen traded at 86.82 versus the dollar and was down almost 1% against UK currency. The Reserve Bank of Australia raised interest rates for the third consecutive month as expected. However, the Australian dollar sold off on the announcement, dropping as much as 0.8% against the greenback. The Aussie currently trades at 0.913 against its US counterpart.