Yen and Dollar Fell While Sterling Excelled

The Yen and the Dollar fell on Thursday, compensating some of the earlier session's gains, while sterling extended gains after the Bank of England kept its quantitative easing target unchanged.A recovery in European stocks helped to buoy the Euro and perceived higher risk currencies, which fell sharply on Wednesday as optimism about the global economy's recovery prospects, waned and investors trimmed risk exposure.European equities jumped by 1.1 %, breaking a five-session losing streak and pushing the yen lower after it surged broadly on Wednesday, hitting a five-month high against the USD.Analysts noted, however, that the current moves are corrective and do not represent any fundamental shift in market sentiment.Sterling outperformed meanwhile after the BoE left its asset buying programme at 125 billion pounds, just as most in the market had expected the central bank to expand the total by 25 billion pounds..Sterling jumped by 1.2 % against the Dollar to $1.6255 , while the Euro lost 0.5 percent against the UK currency to 85.98 pence as the pound extended gains after the Bank of England policy decision. The news that it was not expanding quantitative easing came as the central bank left key interest rates unchanged at 0.5 percent, as widely expected.