Treasury - Daily Forex for day 29.06.2007

The dollar firmed versus the euro yesterday after the Federal Reserve held interest rates on hold, as expected, but reiterated its inflation concerns. Against the yen, the dollar stopped its three-day drop with the return of the investors' risk appetite in the market.

The crown slipped back to around 28.70 per euro late on Thursday, sheding gains from the previous session and resisting the bullish trend on other CEE markets. Investors apparently resumed carry trade strategy in the wake of Czech central bank's decision to leave interest rates unchanged. As expected, the CNB suggested room for more rate hikes, pointing out that the inflation risks are skewed to the upside.