Treasury - Daily Forex for day 28.05.2006

The dollar slid against the euro and the yen on Thursday after a report showed U.S. economy grew more than three times faster in Q1 than in Q4, but less than expected. The gross domestic product growth quickened to 5.3% in Q1 from 1.7% in Q4, but the market had forecast an acceleration to 5.7%. On the other hand, the dollar shrugged off data showing U.S. existing home sales dropped 2.0% in April after a flat reading in the previous month. Meanwhile, a strong advance in Japanese core consumer price index in April predicted by analysts boosted the yen both against the euro and the dollar.

The Czech crown rallied from an earlier drop against the euro on Thursday after the central bank left interest rates steady and Governor Tuma suggested that the next move will more likely be upwards.