Treasury - Daily Forex for day 20.04.2006

The European common currency rose to fresh seven-month peaks around $1.2394 against the dollar yesterday on growing expectations that U.S. interest rate hikes will soon end. In early New York trade, the dollar got a mild boost from U.S. inflation report, which showed the core CPI rose 0.3% in March, a bit above forecasts and the highest since March 2005. Soaring energy prices helped push the headline rate up 0.4% last month. However, the impact was short-lived and the dollar re-entered the downward path. Elsewhere, the euro hit a new record high against the yen at 145.45 yen.

The crown traded near the 28.50 per euro level on Wednesday, lacking fresh fundamental impulses.