Treasury - Daily Forex for day 30.05.2007

The euro surged against the dollar and hit a fresh record high against the yen on Tuesday after European Central Bank officials signalled that more euro-zone rate hikes would likely be needed. But the move proved temporary as the euro pulled back after a U.S. consumer confidence index for May showed a higher-than-expected increase to 108 from April's upwardly revised 106.3. More importantly, the report posted higher inflation expectations for 12 months from now.

The crown slid to a 3-month low of 28.38 against the euro early on Tuesday, pulled down by bearish sentiment towards central European currencies. Later in the session, it briefly rallied as high as 28.25.