The EUR/CZK exchange rate was curbed in the tiny range of 31.850 - 31.900 during morning trading. However, the koruna started to weaken vs. The euro in the afternoon influenced by the neighbouring currencies, first of all by the Polish zloty. The EUR/CZK subsequently broke the level of 32.000 and closed at 31.950. The Czech currency was losing also against the dollar all day long from the initial level of 29.960 to 27.100 as the dollar rose vs. The euro on the world markets.
The Czech Statistic office will release revised GDP data for the period of 2000-2002 today, harmonized by the EU. GDP level should rise around 8%. We don't expect a significant impact on the EUR/CZK. The koruna will probably follow the other East European currencies. The EUR/CZK should move in the range of 31.850 - 32.150, while it opened at 31.980. Vis-a-vis the dollar, the koruna initiated at 27.060 and the USD/CZK should not leave 26.900 - 27.300 brackets.
open high low close today (24.10.)
EUR/CZK 31.880 32.020 31.870 31.950 31.980
USD/CZK 26.960 27.190 26.920 27.100 27.060
CSOB, Investment Research