Treasury - Daily Forex for day 01.10.2007

The dollar slid to a new record low versus the euro and touched an all-time low against a basket of six major currencies on Friday after a report showing a tame rise of U.S. core consumer prices. The data were in sharp contrast to a euro zone report, which showed a preliminary 2.1% gain in the CPI for September, and underpinned expectations for more interest rates cuts by the Federal Reserve. The steep advance of the euro has further raised concerns over a loss of euro zone competitiveness. Eurogroup chairman Jean-Claude Juncker said on Friday that Washington should take measures to prop up the dollar.

The crown firmed slightly against the euro on Thursday, ignoring CNB's decision to leave interest rates flat. The bank kept the key 2-week repo rate unchanged at 3.25%, in line with broad expectations. On Friday, the trading was muted by a national holiday.