The combination of slightly stronger than expected UK economic growth in Q1 (0.7% versus 0.6% for the consensus) and a disappointingly modest bounce in US new home sales for March (offset in part by a solid set of durable goods orders figures) maintained the downward pressure on the dollar on Wednesday. At 4pm, the greenback was 90.1% easier against the pound compared with its closing level on Tuesday, but unchanged on a week ago.

An unexpectedly large rise in the April IFO business climate index for Germany countered the UK GDP figures, enabling the euro to edge up 0.1% against sterling.

Consequently, the single currency gained 0.3% against the dollar, extending its advance over the past week to 0.5%.

However, the yen lost ground against the dollar, easing 0.1% on the day and 0.2% compared with a week earlier.

Similarly, the yen declined 0.3% against the euro to test once again the Y162 level.

The Swiss franc was unchanged against the dollar.