Treasury - Daily Forex for day 25.04.2007

The dollar slumped to a two-year low against a basket of major currencies and approached a record low versus the euro on Tuesday after softer-than-expected reports on U.S. housing sector and consumer confidence raised speculation the Federal Reserve will cut interest rates later this year. The existing-home sales fell 8.4% in March, the steepest monthly decline since 1989, while Conference Board's index of consumer confidence tumbled to 104 in April from 108.2 in March. Analysts had forecast a reading of 105. March U.S. durable goods orders and new-home sales data are due later today.

The crown remained in a narrow band on the weaker side of 28.0 to the euro yesterday, lacking any impulses.