The koruna significantly firmed against the euro

The Czech currency significantly rose vs. the euro yesterday. The koruna probably followed the EUR/USD exchange rate development due to an absence of domestic stimuli. The EUR/CZK opened at the 31.965 level and touched the 31.865 level at the end of the day. Against the dollar, the koruna firstly softened from the initial level of 29.670 to 29.810. However, the Czech currency corrected its previous losses and closed at 29.680.

The koruna is still likely to be driven by eurodollar markets , no domestic fundamental impulse should appear. We expect the EUR/CZK to move in the range of 31.700 - 31.900, it opened at 31.840 today. The USD/CZK should stay between 29.500 - 29.900. Today's opening level was at 29.730.

	open	high	low	close	today (4.4.)
EUR/CZK	31.965	31.980	31.810	31.865	31.840
USD/CZK	29.670	29.810	29.580	29.680	29.730

Martin Kocura, Investment Research, CSOB