The dollar was weak across the board yesterday after monetary policy makers in Europe failed to follow the US Federal Reserve in cutting interest rates.
Both the European Central Bank and the Bank of England left rates on hold yesterday, preserving the large interest rate premium they now offer over the US.
With rates in the US now down to 1.25 per cent, traders appeared to be in search of high interest rates. High yielding currencies across the globe were capitalising on the low rates in the US. The Norwegian krone reached its highest level in more than three months, as did the Australian dollar. The New Zealand dollar touched a four-month high.
The euro also pushed to $1.0097 - its highest level since July and a cent lower on the day.
