The Czech koruna improved its historical
high yesterday, as it climbed for a while to
EUR/CZK 28.69. The unit gains from
optimism of markets that Hyundai
investment may raise Czech exports and
may flood FX market by euros. Thus the
koruna opposed to a development on other
regional markets, which made u-turn after
being in positive territory in the first half of
the session. The koruna opened at good
footing at 28.72, and was little moved for the
most of the day. A the end of the day, it shot
up to the new high after new economy vicepremier
Jiri Havel, told the koruna was
strong because the economy was doing
well. He regards the koruna and the interest
rates as appropriate. Nevertheless, the
koruna didn’t retain its gain and returned to
low seventies.
The Czech koruna at new all-time high.
Today the calendar is empty again. Thus
development in the region and comments
may drive the koruna. Eventual recovery of
the zloty may push the koruna further south
to a new high. Moreover, Friday afternoon is
usually supportive for the koruna. Thus the
koruna may move to the new range of
28.50-28.70.
(CSOB - Investment research)