On Friday the Czech currency lost against both main currencies, it lost even
up to 3.5 months minimum against the euro. The main reason for last week's
depreciation is based on worries, that the Czech parliament could not
approve the budget deficit. Such a disagreement could cause coalition
collapse and prime minister resignation. The koruna also lost due to euro
purchases by foreign banks in the afternoon. The rate EUR/CZK opened at
31.655 and finished at 31.760 on Friday.
Today it opened at 31.810 and
should move between 31.600 and 32.000. The currency pair USD/CZK opened at
27.930 on Friday and closed at 28.110. This morning it began at 28.210 and
should stay in a range of 28.000 and 28.500. PPI released today should have
a limited impact on the rate.
Zdenek Safka, Investment Research, CSOB