Treasury - Daily Forex for day 28.02.2006

The dollar held a tight range against the euro yesterday, ignoring a fall in U.S. January new home sales. The sales dropped to a 1.233 million units annual rate from upwardly revised 1.298 million in December. Economists had expected a 1.260 million reading for January. But the focus was mostly on Japan. The yen climbed to one-month highs against the dollar and six-week peaks versus the euro amid growing expectations that the Bank of Japan will soon end its ultra easy monetary policy and start tightening liquidity.

The crown was little changed on Monday, trading near the 28.350 per euro level. The market lacks any important economic data releases this week.