Yesterday the Czech currency crossed the 33 limits against the euro and dropped to new two-year lows. Its maximum was at 33.215 after opening at 33.050, the koruna then closed at 33.180. The CNB meeting today could hardly give any impetus; a change in interest rates is not expected. A change in inflation or GDP prognosis may be of some interest; a verbal support to hike might strengthen the currency. On the other hand negative factors for the koruna remain, i.e. departure of investors to currencies with higher interest rates. Therefore we do not expect return below 33 today, but we might see a new maximum. The rate USD/CZK closed at 26.350 yesterday, opened at 26.615 this morning and should move between 26.40 and 26.90. The EUR/CZK opened at 33.195 today and should stay in a range of 33.10 and 33.30.
CSOB, Investment research