Global Currencies, USD, Euro, Pound, Yen

Tuesday, 5 April 2011 05:56

The dollar strengthened against the euro after the Fed said inflation must be watched “extremely closely,” which couold indicate that U.S. interest rates may be raised sooner than forecast.

The Euro fell against most of its major counterparts after Moody’s Investors Service lowered Portugal’s long-term credit rating to Baa1.

The Australian dollar dropped as once again the central bank left interest rates on hold for a fourth meeting.

The British pound rallied after a report showed the nation’s service industries accelerated at the fastest pace in more than a year last month.

The yen weakened against the dollar as rumours the Bank of Japan is considering offering temporary loans to banks to aid companies with cash-flow shortages following the March earthquake and resulting tsunami.