Financial Markets Review by Lloyds TSB

The US dollar remained under selling pressure this week, with £/$ breaking above 1.61 and €/$ pushing through 1.41 on Friday.

The US dollar remained under selling pressure this week, with £/$ breaking above 1.61 and €/$ pushing through 1.41 on Friday.

Commodity currencies were the best performers this week, underpinned by crude oil gaining to $65 and gold breaking $975.

Fears about regional instability saw Asian currencies post the biggest falls against the US$ this week.

Concerns about fiscal deficits, compounded by mortgage-related selling, lead to 6-month highs in benchmark government bond yields.

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