Among the major currencies sterling was the biggest loser. Even to start with, investors were none too keen on it but they really took flight when a speech by the Bank of England governor pushed back even further expectations for higher UK interest rates. The Aussie was not able to make much headway during the first part of the week but it was helped on its way by the BoE governor and again the same day by the Bank of Canada's failure to make the rate cut expected by many investors: a lower Canadian rate might have encouraged a similar move by the Reserve Bank of Australia.

Towards the end of the week the commodity-oriented currencies all received a boost - as did global equity prices - when the European Central Bank and the Bank of Japan both hinted at increased monetary stimulus. Overall the Aussie strengthened by four and a half cents against sterling and it added two thirds of a US cent.