The dollar fell to below 109 yen for the first time in almost three years this morning despite comments from the White House overnight that it still backs a strong US currency. Earlier this morning, the dollar dropped to as low as 108.90 yen, its lowest level since November 20, 2000. It has since rebounded to 109.06 after suspected intervention by Japanese authorities.
The dollar also remains weaker against the euro, with the single currency rising again this morning to USD1.1845 from USD1.1820 last night. Meanwhile, the Bank of England's monetary policy committee is expected to keep its benchmark interest rate unchanged at 3.5pc today following its two-day meeting. The central bank last cut rates in July, when it lowered borrowing costs by 25 basis points saying that export growth could ease due to sluggish demand in the eurozone. Analysts say the bank will leave rates steady today as it awaits further evidence that the economy is improving, although some economists expect to see rates rise before the end of the year. //www.fxcentre.com