Treasury - Daily Forex for day 21.06.2006

The dollar weakened against the yen on Tuesday after Bank of Japan Governor Toshihiko Fukui suggested the bank might raise interest rates for the first time in six years as soon as July. The dollar's fall against the yen helped the euro to slightly strengthen against the U.S. currency. However, the markets ignored a U.S. government report that showed the pace of U.S. housing construction rose more than expected in May after three months of declines. The data apparantly did not change the view that the Fed will lift rates again next week.

Lacking fresh fundamental impulses, the crown held near the 28.500 per euro mark on Tuesday, above a two month low hit in the previous session.