The koruna opened at 31,435 yesterday. It firmed to 31,365 after release of ČNB Minutes. The main issue is that probability of next rate hike this month is high. The trading was quite vigorous with high interest from abroad. However, negative sentiment came from other central European markets, the koruna pared gains and dropped to 31,450 EUR/CZK. For today foreign demand for the koruna will be the most important element, current account balance is not supposed to influence the rate. Today we expect correction, the koruna should fluctuate within 31,35-31,60 EUR/CZK, it opened at 31,395 in the morning.
ČSOB - Investment Research