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)