Treasury - Daily Forex for day 23.05.2006

Growing uncertainty over the outlook for U.S. economic growth and inflation pulled the dollar lower against the euro yesterday. Whereas the European Central Bank and the Bank of Japan have signalled a tightening stance, analysts doubt whether the U.S. Federal Reserve will continue to raise interest rates.

The Czech unit was relatively immune to global equity market fall which triggered the biggest daily loss on the Prague Stock Exchange's key index PX in eight years yesterday. The Prague bourse's PX slumped nearly 6% on the day to hit a 7-month low. However, the crown ignored data showing March retail sales beat market expectations, up 6.7% yoy.