Treasury - Daily Forex for day 19.04.2007

The dollar slid to a 26-year low against sterling and traded within sight of an all-time low versus the euro on Wednesday in the wake of no major U.S. economic data, which could at least provide a short-lived support for the beleaguered currency. Growing prospects for a cut in U.S. interest rates later this year have been in sharp contrast to expectations of policy tightening in Europe and Japan.

The crown lost ground on Wednesday, tracking other central European currencies, which jointly slipped against the single currency. CNB Governor Zdenek Tuma's remark on monetary policy, made after the close of domestic trade, appeared clearly hawkish. Tuma said that the next interest rate move would likely be a hike, pointing to strong economic data in the past month.