Treasury - Daily Forex for day 04.12.2006

The dollar slumped to fresh multi-month lows against major currencies on Friday after surprisingly weak U.S. factory data raised fears about a hard lending for the U.S. economy. Against the euro, the dollar fell to a 20-month low for the eighth consecutive session. The Institue for Supply Management reported its index for manufacturing activity dropped to 49.5 in November from October's 51.2, indicating contraction for the first time since April 2003. Analysts had expected the index to increase to 51.5.

The crown retreated from an all-time high of 27.820 to the euro on Friday to trade around the 28.000 level at the end of the session.