During Wednesday's trading session, the Euro tumbled to hit a 5 month low against the Dollar and Pound, as the single Eurozone currency's decisive break under an important support level against the US greenback drove widespread selling.

The Dollar rapidly climbed, nudged higher as investors estimated that the Massachusetts election of a Republican to the country's Senate would be a positive development for the Dollar, as it might see the Government rein as far as spending goes, and pull back the fiscal debt.

"Euro/Dollar will stay under selling pressure at least in the near term as the market entertains the idea that it may have to reassess the broader tone of the US fiscal situation after the election. If the market is considering whether the U. S. fiscal outlook is looking better, while it's still looking ropy in the Eurozone, that's giving conviction to be short on the Euro", said Paul Mackel, Director of Currency Strategy at HSBC, London.

Commodities currencies across the market declined on speculations that some Chinese banks might have been instructed to curb lending, a development that, some experts feel, could hurt the country's economic recovery and pull back its demand for commodities.