The US dollar has made gains against the euro and the pound as a gauge tracking interest rate expectations rose to the highest level since October on the first trading day of 2010.
Pound Sterling – UK Markets
The pound recovered from early losses against the dollar this morning, as demand from a UK bank helped to support sterling on the first trading day of the New Year.
Sterling pulled back to trade at USD1.615, from a low of USD1.606 and remains steady against the greenback.
US Dollar – US Markets
The dollar dipped this morning after making early gains against the pound and the euro. The greenback also came off a four-month high against the yen but remained broadly supported on growing optimism about the prospects for a US economic recovery.
The dollar currently trades against the pound at 0.621 and 0.699 versus the euro. It traded down 0.2% at 92.82 yen after hitting highs of 93.22 yen.
Euro – European Markets
The euro was virtually unchanged on the day at 88.72 pence and tested as low as 1.4258 versus the US dollar.
The single currency remains on the back foot against sterling, having fallen roughly 7% against the pound last year. A slide under 88.52 would mark the euro's lowest levels since November.
Other Currencies – Highlights
The Canadian dollar, Mexican peso and Korean won made gains against the dollar to trade at CAD1.041, 12.956 pesos and 1154.60 won.
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