Treasury - Daily Forex for day 31.10.2005

Easing political concerns in the U.S. and a stronger-than-expected U.S. gross domestic product report bolstered the dollar versus other world currencies on Friday. U.S. third quarter GDP grew by 3.8%, faster than by 3.6% expected by analysts. At the same time, the GDP deflator rose 3.1%, above economists' forecasts for a rise of 2.8%. Earlier, a softer-than-expected report on the University of Michigan consumer confidence index had a limted negative impact on the dollar.

The Czech crown surged against the euro on Thursday after the Czech National Bank unexpectedly raised interest rates from their record lows. The benchmark 2-week repo rate was lifted by 25 basis points to 2%, on a par with the European Central Bank's main rate. The Czech market was closed for a national holiday on Friday.