Jan Frait from CNB supported the koruna yesterday by saying there is no reason to weaken the koruna

On Thursday the Czech currency opened at 32.005 against the euro and at 27.240 against the dollar. In the morning the rate USD/CZK depreciated to 27.390. In the afternoon Jan Frait from CNB, who did not see any reason to weaken the koruna by changing interest rates, supported the koruna. The koruna strengthened to 27,195, but it closed at 27.270. The ministry of finance and CNB declaration that the euro currency might be adopted after fiscal reforms in 2009-10 had a minimal impact. However, the koruna appreciated against the euro and closed at 31.890 yesterday. This morning the koruna opened at 31,885 per euro and should move between 31,60 and 32,20. Against the dollar it began at 27,260 and should stay in a range of 26,90 and 27,60. Today's development should be influenced by events abroad, no important development is expected on our domestic scene.

CSOB, Investment Research