The koruna corrected some of its losses yesterday which suffered on Tuesday
after S&P downgraded the country's local currency ratings. The currency
opened at 30.925 in the morning, then rose to 30.760 and closed at 30.875
per euro. Vis-a-vis dollar the koruna gently weakened to the level of 30.960
in comparison with Tuesday's 30.880.
Neither today we expect that the koruna
should have a reason for strengthening. The only case when the koruna should
rise is the ECB rate cut by 50 bps which erases interest rate differential
and it is less likely. We anticipate the EUR/CZK without ECB cut in the
range of 30.750 - 30.950 today. The koruna opened at 30.790 per dollar as
the euro rose versus the dollar during the night. The EUR/CZK started at
30.900 in the morning.
open max min cls open 7/11
EUR/CZK 30.925 30.925 30.760 30.875 30.900
USD/CZK 31.020 31.030 30.900 30.960 30.790
Stepanka Kuzilkova, Investment Research, CSOB