Treasury - Daily Forex for day 17.10.2007

The low-yielding Japanese yen rose broadly yesterday as risk aversion increased on the back of a sell-off in global equities and a surge in oil prices to new record highs. The dollar slipped against the yen, but held ground versus the euro after data showed the United States posted a record net $163 billion capital outflow in August. However, the report was seen as one-off phenomenon that reflected the financial market's turmoil two months ago. Today's economic data calendar in the U.S. includes the release of housing starts and building permits for September and also inflation figures for the same month.

The Czech unit firmed marginally against the euro on Tuesday, but remained within a tight range, lacking any market-moving news.