Treasury - Daily Forex for day 24.01.2007

The dollar fell against European currencies yesterday, hitting a 14-year low against sterling, as comments from BOE and ECB representatives boosted chances for further policy tightening in the UK and the euro area. The euro was also supported by stronger-than-expected November industrial orders in the euro zone. The yen continued to be under pressure, slipping to fresh record lows versus the euro after comments from Bank of Japan Governor Toshihiko Fukui who suggested that the next interest rate hike could be delayed beyond February.

The crown tumbled through the 28.0 per euro level late on Tuesday to touch nearly a 7-week low against the single currency as mainly London banks sold the central European currencies.