Yesterday the Czech currency opened at 31.255 against the euro. It
strengthened in the morning because a Czech bank sold huge amount of the
euro. The FX market did not react to the agreement of Czech coalition
political parties concerning budget deficit diminishing up to 4% GDP in 2006
and the exchange rate EUR/CZK started weakening at noon. The currency pair
closed at 31.360 in the afternoon.
Today it opened at 31.340 and should move
in the range of 31.200 and 31.450. The rate USD/CZK opened at 28.860 on
Monday, the koruna strengthened due to Eurodollar market development. It
closed at 27.810. Today the rate USD/CZK started at 28.870 and should stay
between 27.600 and 27.900.
Zdenek Safka, Investment Research, CSOB