On Wednesday the Czech currency opened at 32.090 against the euro and at 27.380 against the dollar. It was slightly depreciating in the morning due to euro purchases. However, the koruna reversed its slide in the afternoon and closed at 32.080. Similar development was also to the dollar but the rate USD/CZK closed at 27,400 due to strengthening of the American currency on euro-dollar markets.
Today the koruna opened at 32.030 against the euro. We expect a quiet trading session in a range of 31.90 and 32.20. The koruna began at 27.430 against the greenback this morning and should stay between 27.30 and 27.90. Central bank should discuss interest rates today but we do not expect any change. Therefore koruna's movements against main currencies might be more influenced by eurodollar market events.
CSOB, Investment Research