Dealers were likely encouraged by strong industrial data and last week's
approval of 2003 budget draft and bought korunas. The koruna firmed from
30.880 in the morning to 30.620. During the afternoon trading the koruna
only weakened but finally it closed stronger at 30.740 per euro. The USD/CZK
followed the euro-dollar development - in the morning strengthened and in
the afternoon weakened.
We think that the yesterday's firming doesn't mean
any break point in EUR/CZK development. We cannot exclude movement of the
koruna's rate to slightly stronger level but the CNB Minutes release due
today should hamper it. We anticipate the EUR/CZK to move from 30.650 to
30.850 and the USD/CZK from 30.250 to 30.750. The koruna opened at 30.700
per euro and at 30.450 per dollar.
open max min cls open 12/11
EUR/CZK 30.880 30.880 30.620 30.740 30.700
USD/CZK 30.500 30.500 30.220 30.375 30.450
Stepanka Kuzilkova, Investment Research, CSOB