Treasury - Daily Forex for day 20.12.2004

The U.S. dollar weakened against other world currencies in a technically-driven trading on Friday. In early New York session, the dollar surged briefly on news that U.S. November inflation came in line with expectations. U.S. headline consumer prices grew 0.2%, while the core rate, which excludes food and energy, was also up 0.2%. Both figures exactly matched market forecasts. The report suggested that U.S. inflation was accelerating, justifying the process of Federal Reserve's tightening policy. However, the dollar showed little reaction to a White House report on the economic growth outlook. The White House forecasts the U.S. economy to grow 3.5% in 2005 before slowing to 3.4% in 2006.

The crown rose as high as 30.380 to the euro on Friday, its strongest level since October 2002, propped up by bullish mood in other currencies of central European region.