Treasury - Daily Forex for day 23.01.2007

In the absence of any major economic data, the euro weakened moderately against the dollar on Monday, being locked in a range between $1.29 and $1.30. But the yen slumped broadly on the back of expectations that Japan's wide interest rate gap with other major countries would unlikely to shrink any time soon. Investors have used the low-yielding yen for purchase of currencies with a higher return.

The crown failed to capitalize from from news that the new centre-right government succeeded in a parliamentary vote of confidence late on Friday. Instead, the crown extended its losses versus the euro on Monday, knocked down by poorer sentiment toward the whole region.