The koruna reached the level of 29.040 against the euro and the level of
29.240 against the U.S. dollar. Rather than the low inflation figures the
clients' purchases, thin market and the development of the EUR/USD were
behind the yesterday's strengthening. The minutes from last Bank Board
meeting is published today, at which the CNB discussed interventions and
finally decided that such a step would be premature. According to the last
development of the EUR/CZK is clear, that only the intervention could stop
koruna's strengthening. The market is nervous however if the CNB doesn't
enter the market the koruna will tend to boost. Temporary inactivity of the
CNB only backs the koruna. The previous all-time low was 29.070.
The koruna broke the level of 29.000 against the euro in early morning
trading today, a new all-time low is 28.860. The USD/CZK reached 29.000.
open max min cls open 10/7
EUR/CZK 29.260 29.265 29.040 29.100 29.100
USD/CZK 29.585 29.585 29.240 29.300 29.250
CSOB, Investment Research