Further weakening of the U.S. dollar against the euro helped the koruna to
strengthen against the American currency. The USD/CZK opened at 27.780
yesterday and touched the level of 27.550 during the day, which is the new
record level since January 1997. However, the koruna slightly corrected its
gains in the end of trading and closed at 27.650. Vis-a-vis the euro, the
koruna firstly firmed from 31.340 to 31.250. The trend reversed in the
afternoon and the EUR/CZK closed at 31.320. The trading was mostly
technical.
The koruna will follow development on eurodollar markets again.
The trading activity could be influenced also by the holiday on Thursday. We
expect the EUR/CZK to move in the range of 31.250 - 31.450 as it opened at
31.350 today. Against the dollar the koruna should remain between 27.300 -
27.700. The USD/CZK exchange rate opened at 27.490.
open high low close today (7.5.)
EUR/CZK 31.340 31.350 31.250 31.320 31.350
USD/CZK 27.780 27.780 27.550 27.650 27.490
Martin Kocura, Investment Research, CSOB