The Japanese yen rose against majors as investors resorted to the Japanese currency as a refuge amid the tension ongoing in market where the Fed's vow to keep interest rate low could not ease the jittery situation.

Yesterday, the Fed said it would keep record-low borrowing cost through mid-2013 and ready to use a wide range of tools to boost recovery that slowed down, however the statement was considered week compared to other central bank's interventions seen last week.

Following the Fed's chairman speech, the dollar dropped against a basket of major currencies, yet it rebounded slightly today to 73.93 compared with the day's opening level of 73.89, according to the dollar index gauge.

Tensions and fears are still persisting in markets where investors are worried that global econmeis, led by the United States, may head to another recession or financial crisis, triggering demand on safe haven assets.

Still, the S&P cut to U.S. sovereign rating by one step to AA+, losing its top rating for the firs time since 1941, is having negative impact on markets.

Gold advanced for the fourth consecutive session after touching a new fresh high yesterday of $1779.45 an ounce.

Moreover, the Swiss franc retreated against majors as the Swiss National Bank (SNB) in its battle to curb the franc's advance decided to increase the supply of liquidity in markets, raise sight deposits to 120 billion francs from 80 billion francs and adopt foreign-exchange swap transactions to reinforce liquidity.

It is clear that the SNB is ready for using any methods to halt the franc's rally which is poses a threat to the development of the economy in Switzerland and has further increased the downside risks to price stability, according to the SNB.

Concerning the EUR/CHF pair, it inclined to trade around 1.0423, after recording a high of 1.0519 a low of 1.0283.

Concerning the USD/JPY pair, it plunged for the fourth consecutive session, falling below last week's intervention by the BoE, to trade at 76.50 after touching a high of 77.30 and a low of 76.38.

The trading range for today is among key support at 74.55 and key resistance now at 79.55.

Moving to the British pound versus the dollar, it retreated on the daily basis to 1.6256 after opening at 1.6315 after the BoE lowered growth and inflation forecasts in its quarterly inflation report released today.

The BoE said growth outlook is now weaker and inflation will decline below target in the medium term.

So far, the pair has recorded a low of 1.6189 while the highest level was depicted at 1.6333, whereas the trading range for today is among key support at 1.5935 and key resistance at 1.6550.