Treasury - Daily Forex for day 15.01.2007

The dollar slid from 1-1/2-month highs against the euro on Friday as traders adjusted their positions ahead of a prolonged weekend and following a dollar's three-day rally. Earlier in the day, the dollar received a boost from a higher-than-expected 0.9% rise in December retail sales. The result was the best since July 2006. Still, the report also showed a downward revision for November.

The crown fell to a 2-1/2-week low of 27.818 per euro on Friday on the back of expectations for a continued worsening of a current account and prospects for a widening of the yiled disadvantage versus euro borrowing costs. A newly appointed CNB board member Mojmir Hampl said on Friday that he did not consider the recent crown's appreciation steep enough to spark a rate cut, reinforcing market's view that a possible proposal for policy easing would not enjoy a broader support within the Board.