Treasury - Daily Forex for day 22.06.2006

The U.S. dollar lost ground on Wednesday after European Central Bank's President Jean-Claude Trichet suggested in testimony before the European Parliament that euro interest rates will have to be raised further to tackle a problem of rising inflation in the 12-nation block. Otherwise, the market lacked important economic data.

The Czech crown soared against the euro yesterday after the Slovak central bank entered the market to boost its own currency. The Czech unit seemed also helped in late trading by promises of the forming coalition government that it would aim to meet the Maastricht criteria for euro adoption in 2008.