Treasury - Daily Forex for day 13.11.2006

The U.S. dollar dived to a 2-1/2-month low against the euro on Friday on the back of concerns that China would diversify its foreign exchange reserves worth of $1 trillion. People's Bank of China Governor Zhou Xiaochuan said the bank plans to diversify its assets across different currencies and investments, the step that could hurt the U.S. currency. This week, traders will look at a slate of U.S. economic data, including retail sales, the consumer price index and net capital inflows.

CNB Vice-Governor Miroslav Singer said on Friday that the interest rate tightening envisaged in the bank's quarterly prediction might be delayed following the recent crown's firming to a new record high against the euro. The crown slipped on the Singer's comment but firmed back to opening levels in the late trading.