The koruna recovered from Wednesday's slump under the 31.000 level pulled by
profit taking and a correction of the recent losses. During the morning the
EUR/CZK remained in the range of 30.900 - 31.100, after the noon the Czech
currency finally broke the 31 koruna per euro level and closed at 30.780.
Against the dollar the koruna stayed in the range of 31.500 - 31.760, the
euro's weakening versus the dollar was eliminated by the EUR/CZK
development. We do not anticipate any significant change on the forex market
today, the EUR/CZK should remain between 30.500 - 31.000 and the USD/CZK
between 31.300 - 31.900.
The government will likely approve a state budget proposal for the next year
on Monday.
Stepanka Kuzilkova, Investment Research, CSOB