Events in the currency markets partly mirrored those in commodity markets,
with a number of previously strong, resource-linked currencies such as the Australian dollar and the Norwegian krone losing ground against the US dollar. Other recent beneficiaries of currency strength also retreated. One of the month’s biggest losers was the Swiss franc, while the Japanese yen also declined against the US dollar. Meanwhile, slowing European economic growth placed pressure on the euro, while sterling made small gains against the US dollar. Latin American currencies were among the top performers as investors speculated that central banks in the region would be forced to raise rates aggressively to rein in soaring local inflation.