The Czech koruna continued to fall
yesterday. The unit touched EUR/CZK 31.55
in the first three hours of the session.
Nevertheless, it almost ignored August’s
current account, which posted CZK 18.2 bn
gap what was in line with expectation.
The Current account deficit shrank by almost
half from the previous month, but negative
influence of dividend outflows persisted.
Therefore C/A for the whole year may end in
record deficit of CZK 195 bn. The most
positive feature of the release is two-year
high inflow of foreign direct investments
which jumped to CZK 19.9 bn in August. It
eased fears that the Czech Republic was
losing its attraction to foreign investors.
The koruna recovered in the afternoon to
close only little weaker at EUR/CZK 31.49.
Moreover, the unit erased all losses in the American trading.
Today the koruna may develop a sideways
pattern. September’s PPI figure may be
taken, as some type of non-event. Traders
may wait for tomorrow’s state budget draft
vote in the Parliament. However, slight
weakening pressure will likely persist.
ČSOB - Investiční výzkum