Yesterday the Czech currency appreciated slightly versus the single
currency. It began at 32.450 in the morning; it was strengthening the whole
day and closed at 32.420. But it weakened against the dollar. The rate
USD/CZK opened at 29,740, it reached 29,890 at about midday and returned
back to 29,780 when closed.
The koruna development corresponded more to the
progress on Eurodollar markets then to fundamental reasons. The koruna stays
under a constant pressure due to state budget proposal for 2004. Today the
pressure might ease; the Social Democratic party leadership approved the
proposal yesterday. The rate USD/CZK starts at 29.990 this morning and
should stay within a range of 29.800 and 30.300. The EUR/CZK opened at
32.400 and should stay between 32.320 and 32.520.
Zdenek Safka, Investment Research, CSOB