Uncertainty prior to votes on the state budget for 2004 caused higher
volatility of the EUR/CZK exchange rate. The koruna firstly fell against the
euro from the initial 32.750 to 32.900 in the beginning of morning trading.
However, some profit-taking appeared later and the koruna closed firmer at
32.690. Against the dollar, the koruna fell from the opening level of 29.050
to 29.220 during the morning trading. On the other hand, rising dollar vs.
the euro pushed the koruna at 29.220 level at the end of the session.
Government discussion on the budget deficit is on the way today. The FX
market could be jittery again and the koruna could tend to weaken. The
EUR/CZK should move in the range of 32.600 - 32.800, while it opened at
32.680. Vis-a-vis the dollar, the koruna initiated at 29.330 and should stay
between 29.100 - 29.600 brackets.
open high low close today (17.9.)
EUR/CZK 32.750 32.900 32.640 32.690 32.680
USD/CZK 29.050 29.220 29.050 29.220 29.330
CSOB, Investment Research