Treasury - Daily Forex for day 25.03.2007

The dollar rebounded on Thursday from a two-year low of $1.3411 per euro it hit in the previous session after the Federal Reserve failed to mention a possible interest rate hike in the statement accompanying its decision to keep interest rates on hold. Investors apparently re-evaluated the statement, pointing to Fed's persisting concern over inflation pressures. Beside this, the dollar was supported by a report showing the initial jobless claims surprisingly fell last week to its lowest level in six weeks.

The crown continued to retreat from its recent two-month highs yesterday, briefly touching the 28.0 per euro mark.