Treasury - Daily Forex for day 18.05.2007

The dollar extended its rally versus the euro yesterday boosted by solid U.S. data. The Philadelphia Federal Reserve's business activity index posted an unexpectedly strong rise in May while initial jobless claims fell for the fifth consecutive week. Elsewhere, the yen weakened after the Bank of Japan kept interest rates flat at 0.5%, as expected, and the Japanese economy grew slightly less-than-expected in the first quarter.

The crown was little changed against the euro on Thursday, trading near the 28.15 level. CNB policymaker Tomsik said later in the day that it was too early for him to decide on interest rates adding he needed a closer look at inflation pressures first.