The greenback tumbled to 87.10 against the Japanese yen, the lowest since 1995, on active cross buying in jpy after the expiration of sizeable options with strike price at 90.00 in New York session.

U.S. currency rallied against Swiss franc to as high as 1.1597 after SNB Vice Chairman Philipp Hildebrand said the Swiss National Bank was ready to pull out all stops to avoid deflation and may even resort to unlimited intervention by buying other currencies at a fixed rate. Euro also rose sharply versus the Swiss franc fm 1.4735 to 1.4920.

Investors are now expecting the Bank of England will probably soon start buying 'a rather wide range of financial assets' in an effort to increase money supply and boost the economy. The British pound tumbled to a low of 1.3620, the lowest since 1985, on active cross selling in sterling. The sterling fell sharply fm 126.16 to 119.44 versus the Japanese yen.

The single currency fell to 1.2825 against the U.S. dollar after Standard & Poor’s downgraded the rating of Portugal. Euro tumbled versus the Japanese yen from 117.23 to 112.08.

Thursday will see the release of Japan’s trade balance, eurozone industrial production, U.K. CBI industrial trend, U.S. building permits, housing starts and jobless claims and house price index.