The koruna rose against the euro and the dollar

The Czech currency corrected its losses from Wednesday and firmed against the euro. The EUR/CZK opened at 31.730 in the beginning of yesterday's trading and the koruna rose to 31.605 during morning session. It closed at 31.655. CNB's Bank Board meeting brought no surprises and didn't influence the trading. Against the dollar, the koruna followed development on the eurodollar markets. The USD/CZK opened at the level of 29.410 and the koruna strengthened to 29.200 as the dollar fell against the euro. However, the trend reversed in the afternoon and the koruna slipped against the dollar to 29.480. The market will watch the third round of the presidential election today. We don't expect any significant impact on the EUR/CZK exchange and it should move in the range of 31.580 - 31.780. Vis-a-vis the dollar, the koruna should remain between 29.100 - 29.600. The EUR/CZK opened at 31.650 and the USD/CZK at 29.470 today.

CNB's Bank Board left the key rates unchanged yesterday on 2.50% level. Central bank's governor Z.Tuma stated, that a sharp ECB rate cut would be significant for Czech monetary policy. However, Tuma also added, that 25bps rate cut by ECB would not mean anything for Czech central bank.

open	high	low	close	today (28.2.)
EUR/CZK		31.730	31.760	31.605	31.655	31.650
USD/CZK		29.410	29.500	29.200	29.480	29.470

(CSOB investment research)