Treasury - Daily Forex for day 29.07.2005

The dollar appreciated against the euro and the yen yesterday after China's central bank reported in its statement that it does not intend to revalue the yuan further following the 2.1% revaluation versus the dollar last week. Later the dollar lost some of its previous gains after an unexpected drop in U.S. consumer confidence in July. The Conference Board's confidence index fell to 103.2 from a revised 106.2 in June, lagging behind an economists' prediction for 106.0 reading. Earlier, the euro failed to benefit from a higher-than-expected Ifo business sentiment index for Germany and from a report citing European Central Bank representatives saying the bank will unlikely change interest rates this year.

The Czech crown was barely changed against the euro on Tuesday on a lack of domestic impetus and a holiday mood. Currently the market is preparing for tomorrow's central bank monetary policy meeting, but no change in interest rates is forecast. The bank is also expected to revise its inflation projection upwards.