Treasury - Daily Forex for day 28.04.2006

The dollar slumped against other world currencies on Thursday after Federal Reserve chief Ben Bernanke in a congressional testimony said that "at some point in the future" a pause in policy tightening may happen. The markets took his remarks as an indication that the widely expected hike in May to 5% will be the last in current tightening cycle. Putting the dollar under additional pressure, Bernanke added that global imbalances may affect the currency. Against the euro, the dollar fell through the psychologically important $1.2500 level, hitting the lowest rate since September 2005, at $1.2550.

The Czech crown fell moderately against the euro in early trade on Thursday, but held steady after the Czech National Bank decided to keep interest rates unchanged at its monthly policy meeting. The Bank Board unanimously agreed to hold the key two-week repo rate steady at 2%.