Treasury - Daily Forex for day 21.03.2007

The dollar slipped against most major currencies on Tuesday as investors' risk aversion came back in the spotlight. The dollar's losses against the yen were sparked by a magazine report showing that China would stop accumulating reserves as they are already large enough. Though, analysts expect People's Bank of China's reserves to continue increasing as the bank will highly unlikely to stop buying foreign currencies, especially dollars, to stem the yuan's appreciation. Investors were also focusing on the end of a two-day Federal Reserve rate-setting meeting on Wednesday. The Fed is broadly expected to keep its benchmark rate flat at 5.25%.

The Czech crown pulled back from a two-month high versus the euro on Tuesday as the whole region was hit by the Slovak central bank's intervention against its currency.