Treasury - Daily Forex for day 20.10.2007

The dollar slid to record lows against the euro and a basket of major currencies yesterday after fresh soft U.S. economic data propped up expectations for a rate cut by the Federal Reserve. Weekly U.S. jobless claims came in higher-than-expected as well as the Philadelphia Federal Reserve business activity survey underscored the weakness of the world's largest economy. Moreover, most market participants believe that the dollar's record low value will not be mentioned in the statement of G7, which holds a meeting this weekend.

The Czech crown extended its gains on Thursday to hit new life-time peaks both against the euro and the dollar. The currency was helped by positive mood in the whole CEE region, which benefited from the broad weakness of the U.S. currency.