The Czech currency weakened against the euro from the initial level of
31.580 to 31.700 in the end of trading. The koruna's decline was backed by
softening of the other Central European currencies, especially the Polish
zloty, and, on the other hand, by the lack of impulses on the Czech market.
Current weakening is in line with standard daily movements. Vis-a-vis the
dollar, the koruna was moving in the narrow range of 29.360 - 29.500 and
closed at 29.400. CNB's Bank Board meeting, due today, should not impact the
market significantly as no change in current interest rates level of 2.50%
is expected. The market could me more influenced by the third round of
presidential election due tomorrow. The koruna should remain in the range of
31.600 - 31.800 against the euro and between 29.200 - 29.600 vs. the dollar.
The EUR/CZK opened at 31.730 and the USD/CZK at 29.410 today.
open high low close today (27.2.)
EUR/CZK 31.580 31.74 31.545 31.700 31.730
USD/CZK 29.360 29.500 29.360 29.400 29.410
Martin Kocura, CSOB Investment Research