Treasury - Daily Forex for day 02.11.2005

The U.S. dollar climbed to fresh two-year peaks versus the yen, but lost ground against the euro yesterday after the Federal Reserve raised interest rates again, in line with market expectations. The Fed lifted its benchmark rate by 25 basis points for the 12th consecutive time, to 4%, and suggested more policy tightening is on the way in its accompanying statement. Earlier, the dollar received a slight boost from a better-than-expected report on U.S. manufacturing in October. The Institute for Supply Management's manufacturing activity index dipped to 59.1 from 59.4 the previous month, but analysts had forecast a much bigger decline, to 57.0.

Tuesday's trade at the Czech currency market was quiet, with the crown closing the session almost unchanged versus the euro, near its 2-week highs.