UK currency recovered some ground against the dollar and euro today, as investors bought the pound back at cheaper levels after it was sold in the wake of the UK pre-budget report. Australian and New Zealand currency were both up and Switzerland's central bank is due to meet later, with no change in rates expected.

Pound Sterling – UK Markets

The pound has managed to stem its recent losses to trade at 1.64 against the dollar and 1.10 versus the euro. However, the fiscal outlook looms ominously and sterling’s progress may depend on the decisions made in the Bank of England’s monetary policy meeting later today.

US Dollar – US Markets

The dollar has managed to hold steady against the yen to trade at JPY87.81 and was flat against the euro at 0.67. Later today all eyes will be on US weekly jobless claims looking for evidence supporting a better-than-expected monthly jobs report last week, which sent the dollar higher.

Euro – European Markets

The euro has been undercut by concerns about sovereign debt in the region, with Standard & Poor's cutting Spain's credit outlook to negative after Greece's credit rating was downgraded. The single currency was down 0.2% against sterling at 90.37 pence and traded at 1.472 versus the US dollar.

Other Currencies – Highlights

The Australian dollar bounced up 1% on the dollar and more than 1% on the yen after Australian employment beat forecasts in November and stoked expectations for an interest rate increase in February. The kiwi also rose about 1% after the Reserve Bank of New Zealand, which held rates steady at 2.5% on Thursday, altered its tone and said it may begin removing policy stimulus by the middle of 2010.