Dubai: US data published last week showed the economy grew faster than previously estimated. GDP growth was revised up to an annualised rate of 2.5 per cent from 2.0 per cent as exports, and consumer and government spending were stronger than initially thought, the Commerce Department said.

There are signs activity picked up calmly as the fourth quarter started, but expectations are that growth will likely remain below the 3.5 per cent rate that economists say is needed to reduce a 9.6 per cent unemployment rate.

Euro

The euro started the week appreciating against the dollar to $1.3750 after Ireland sought an international bailout to tackle its banking and budget crisis. ECB Governing Council member Axel Weber was convinced the euro would survive and that a financial safety net created by Eurozone governments would be enough to rescue the European currency.

Weber, also president of Germany's central bank, said he believed euro zone states could come up with more money if the existing 750-billion-euro safety net ever proved insufficient. And those euro zone countries should waste no time in cutting their budget deficits and should not fear that this would endanger their recovery.

Range for previous week: $1.3720-$1.3960 (Dh5.0394 -Dh5.1275)

Range for this week: $1.3196-$1.3786 (Dh4.8469 -Dh5.0649)

Pound

The pound rose against a broadly weaker euro after official data confirmed Britain's economy grew 0.8 per cent in third quarter this year, down from 1.2 per cent in the second quarter, while other data showed a 2.2 per cent jump in exports, reducing the UK trade deficit.

Bank of England Governor Mervyn King was forced to defend himself from the charge of political interference on Thursday over the Monetary Policy Committee's explicit approval of the government's fiscal plan.

King said the government's new fiscal plan provided a very strong and powerful agreement to reduce the UK budget deficit.

Range for previous week: $1.5720 - $1.5960 (Dh5.7739 - Dh5.8621)

Range for this week: $1.5575-$1.6084 (Dh5.7222 -Dh5.9093)

Yen

Japanese Economics Minister Banri Kaieda said on Wednesday that Japan may strengthen sanctions on North Korea after the shelling of a South Korean island on Tuesday, he also mentioned that Japanese economy will be affected by raising tension in the region.

Japan's annual export growth slowed for an eight straight month in October due to a stronger yen, and a central banker warned that major economies face growing risks, suggesting external demand could weaken further.

Range for previous week: 82.50 yen-84.20 yen (Dh0.04452-Dh0.04362)

Range for this week: 82.76 yen-84.18 yen (Dh0.04439 -Dh0.04363)

— HSBC Global Markets Middle East