The Czech koruna showed a hefty gain from 30.330 to 30.170. However, in the
afternoon it retreated and closed at 30.310. Both figures the foreign debt
and the money supply didn't have any influence on koruna's rate. Against the
U.S. dollar the koruna firmed from 30.850 in the morning to 30.670, where it
also closed as the dollar fell versus the euro.
The central government
budget deficit is released today, it shouldn't have any significant
influence on koruna. We suppose that the koruna doesn't have any clear trend
now and should remain in the band 30.200 - 30.500. Each strong strengthening
of koruna might be followed by CNB's interventions. The USD/CZK will follow
the development of the euro-dollar market, we anticipate the USD/CZK to move
in range from 30.400 to 30.900. This morning the EUR/CZK started at 30.330
and the USD/CZK at 30.670.
Total foreign debt of the Czech Republic narrowed to EUR 24.2 bn (CZK
709.077 bn) at the end of the second quarter from EUR 24.7 bn in the
year-earlier period. It also narrowed in comparison with the previous
quarter. Money supply rose 4.8% year to year at the end of August after
rising 4.3% at the end of previous month.
open max min cls open 1/10
EUR/CZK 30.330 30.350 30.170 30.310 30.330
USD/CZK 30.850 30.880 30.670 30.670 30.670
Stepanka Kuzilkova, Investment Research, CSOB