The euro gained ground against the U.S. dollar after China denied it was looking to offload its massive euro holdings in light of the continent's debt crisis.

The dollar had soared on Wednesday amid rumours that Beijing would seek to limit it exposure to European debt, but the greenback's upward trend was reversed as Beijing denied the reports.

The euro is at $1.2296, compared with a high of $1.2395 Thursday.

A turbulent week on the currency markets pushed the dollar lower as risk appetite made a tentative return. The British pound was among the currencies to benefit from the noted trend.

The pound rose strongly to $1.4580, from $1.4288 on Thursday.

The euro is trading at $1.2320, up slightly from $1.2308 late Tuesday.

The U.K. pound has continued to weaken against the dollar, as the drop in global stock markets dampens risk sentiment. The pound slumped 0.7% to $1.4330, amid suggestions that the recently announced budget cuts by Chancellor of the Exchequer George Osborne will slow the fragile economic recovery.

The euro is currently trading at $1.2184.

In the U.K., despite releasing its first quarter GDP preliminary reading showing that the reading was revised upwards to 0.3% from 0.2%, the news did not buoy the declining pound, as currently the negative sentiment is much heavier than any economic data.

The pound is currently trading at $1.4280.

The euro fell 1.4 percent to $1.2397 at 7:41 a.m. in New York, from $1.2570 on May 21.

The U.K. pound, like the the euro, is depreciating versus the dollar as currently investors are avoiding higher-yielding assets, and turning to lower-yielding currencies which weighs on the strength on the pound. The debt crisis in the UK is weighing on the outlook of the pound, since it haunts the outlook of the nation.

GBP/USD is currently trading at $1.4420.

EASTERN CARIBBEAN
On the ECSE, 3,300 ECFH shares traded at $14.00, holding firm on its closing price from last week. Also traded were 214 St Kitts Nevis Anguilla National Bank shares also holding firm at $2.49.

There was no activity on the Regional Government Securities Market, but the next auction of the Government of St Vincent and the Grenadines 91 day T-bills takes place on Thursday June 17th 2010.

In other news, the Board of Directors of GraceKennedy Limited has approved an increase in dividend payments to a minimum of 15% of Net Profit attributable to stockholders, up from 10%. A decision was also taken to increase the frequency of dividend payments from 2 to 3 times yearly. The company is currently scheduled to make a dividend payment of 50 cents per stock unit to shareholders on record as at May 3rd 2010. Subsequent payments will be made in September and December 2010.

TRINIDAD
Over in Trinidad, market indices posted mixed results as overall market activity picked up from last week. Over 2.7 million units of stock traded valued at nearly TT$60 million. Of the 20 shares traded, 5 advanced, 5 declined while 10 traded firm. Capital and Credit Financial Group Limited emerged volume leader with over 21% of the activity followed by Scotiabank, Trinidad & Tobago and GraceKennedy Limited combining for an additional 30%.

JAMAICA
On the Jamaica Stock Exchange market indices fell as both volume and value of shares traded last week declined significantly. The advance decline ratio was 16 to 14 with 7 shares holding firm. NCB Jamaica was the volume leader for the second straight week accounting for 27% of the overall activity also closing up 11 cents to end the week at $18.24.

BARBADOS
Barbadian markets tumbled as well, despite an increase in volume of more than 3 times last week's total. The Regular Market traded a total volume topping 225,000 shares. Neal and Massy Holdings Limited was the volume leader representing 43% of the total shares traded, despite losing 12 cents to end the week at $13.88.

INTERNATIONAL
On the international front, U.S. stocks rose on the final day of trading, rebounding from the market's biggest drop in a year, as investors speculated equities may have fallen too much during the week on concern about Europe's debt crisis.

And finally in currencies news, the Euro rose the most in eight months against the dollar amid speculation traders who bet on its decline amid Europe's sovereign-debt crisis had to buy back the currency as it strengthened to a one-week high.

The euro, at $1.2551, extended its recent bounce into Asian trade. The euro has bounced strongly since hitting a four-year low below $1.22 on Wednesday.

The British pound slipped to $1.4383 from $1.4417 late Thursday, as the uncertainty created by the euro sovereign debt crisis continues to force foreign currency investors to look beyond Britain to the safer-haven of the U.S.

The euro slipped to $1.2333 from $1.2429 in late North American trading Wednesday.

Any hopes that the only significant economic data coming out of the UK economy today would provide a boost to the British Pound have proved short lived. The Office for National Statistics said sales volumes including petrol and diesel rose 0.3pc last month, slightly better than analysts' forecasts of a 0.2pc rise, after an upwardly revised increase of 0.5pc in March.

GBP/USD is 0.28% lower at $1.4369.

The euro fell below $1.22 for the first time since April 2006, but in morning trading had edged back to trade up 0.2 percent at $1.2205.

The pound traded near its lowest level in more than thirteen months against the dollar on the news from Germany, spurring demand for the perceived safety of the U.S. currency.

The U.K. currency fell to $1.4239, its lowest level since March 30, 2009.

The euro dropped as low as $1.2315, before pulling back to $1.2400.

The U.K. pound plummeted to a fresh 13-month low against the dollar after new Prime Minister David Cameron said that the government had discovered “very bad” spending decisions by the Labour Party.

The Pound weakened to a low of $1.4259 against the Dollar, losing 1.1% on the day, after reaching the lowest level since March 31st 2009.

The single currency is at $1.2316 versus the dollar in recent action, down from $1.2375 in North American activity late Friday but a modest recovery from a low of $1.2233 earlier in the day, which marked its lowest level since April 2006.

The British Pound extended the decline from the previous week and slipped to a fresh yearly low of $1.4255 on Monday as the uncertainties surrounding the prospects for fiscal policy weighs on the outlook for future growth.