Treasury - Daily Forex for day 04.05.2006

The dollar remained weak against major currencies yesterday taking little notice of strong U.S. economic data and comments from Japanese Finance Minister Sadakazu Tanigaki that the G7 statement on currencies last month did not mean the dollar would need to weaken. The Institue for Supply Management said its index measuring activity in the U.S. service sector rose to 63.0 in April, its highest since August, from 60.5 in the previous month. The market had forecast a drop to 59.2. U.S. factory orders also exceeded expectations, up 4.2% in March.

The crown kept a bullish tone on Wednesday, approaching a life-time high against the euro of 28.22 as global investors sold the dollar and bought currencies of the central European region.