Treasury - Daily Forex for day 02.03.2006

The dollar erased a part of its sharp Tuesday's losses against the euro yesterday, supported by stronger-than-expected U.S. manufacturing report for February. The Institute for Supply Management's (ISM) manufacturing index rose to 56.7 from 54.8 in January, while economists had forecast a 55.6 reading. The ISM's report overshadowed somewhat benign inflation data which showed the core personal consumption expenditure index (PCE) rose 0.2% in January, in line with expectations. But on an anuual basis, the index dropped to 1.8% from 1.9% in December.

The Czech crown slipped back to its opening levels against the euro late on Wednesday after climbing as high as 28.260, near its lifetime high of 28.220 hit in early February.