The koruna continued to weaken on Friday

The Czech koruna continued to weaken on Friday. Euro-buying orders won the battle on the direction of the market at the end of the last week. Some traders squared their unintended euro-short positions. Moreover, investors took their profits on local currencies in the whole region. Finally, worse-than-expected the December current account deficit fed the negative atmosphere. Comments of newly named CNB Board members failed to move market. They expressed some worries on impact of strong koruna into the economy, but added that direct interventions against the koruna are the last resort measure. However, the correction ran out of steam in the afternoon and the koruna closed only little changed at the EUR/CZK 30.05 zone. It opened at 30.02 and touched 30.15 during the day.

ČSOB