Treasury - Daily Forex for day 31.01.2006

The dollar firmed slightly against its key rivals yesterday, with the market anticipating a quarter point interest rate hike to be delivered by the Federal Reserve this afternoon. The benchmark fed funds rate should be lifted to 4.50%, which would be the Fed's 14th consecutive rate increase and the last policy decision conducted by Chairmen Alan Greenspan who finishes this job after 18 years. The market will be particularly watching the accompanying statement which could offer clues for future policy moves. The U.S. data released yesterday did little to move the exchange rates. The most important core PCE price index was up 0.1% in December, slightly below analysts' forecasts for a rise of 0.2%.

The crown weakened against the euro in late trading on Monday after hitting a new record high of 28.245 per euro in early session. The currency coppied trends on other foreign exchange markets of the region.