Treasury - Daily Forex for day 13.12.2006

The dollar fell against the euro on Tuesday after the Federal Reserve held interest rates unchanged, as expected, but warned about consequences of housing market slowdown. The key fed funds rate was kept at 5.25% for the fourth consecutive meeting yesterday. Earlier in the day, the dollar got a short-lived boost from data showing the U.S. trade deficit shrank to $58.87 billion, the lowest level since August 2005, from $64.26 billion in September. The economists had forecast that the gap would narrow to $63 billion.

The crown was stronger versus the single European currency on Tuesday, with the main impulse for the crown's firming coming from a sharp appreciation of the Slovak crown to new historic highs.