After strengthening from the open level of 30.160 to 30.120 the Czech
currency started to weaken due to buy euros' orders from London's banks. It
fell to 30.370 per euro. Even despite of short firming to 30.240 the EUR/CZK
remained around the level 30.300 for the rest of the day and closed on it.
The koruna lost also against the dollar. It declined from open level 30.890
to 31.050 and closed back at 30.900.
The Finance Minister B. Sobotka on IMF and WB meeting this weekend
mentioned, that the current level of koruna's rate against the euro was
overvalued, but regarding to perspective of the Czech Republic join the
European Union the koruna might apparently strengthen further. The strategy
of euro implementation should be ready until the end of the year, said B.
Sobotka. The central bank's vicegovernor O. Dedek in an interview with
Reuters, said, he would be happier if the koruna were trading at around
31.500 to the euro. The CNB will use "all methods" to try and stem the
strength of its koruna, including cooperation with the government on fiscal
consolidation and maybe cutting interest rates.
The money supply (M2) will be released today, we anticipate, that it will
have minimum influence on the koruna's trading. We expect the EUR/CZK to
move in range 30.200 - 30.500. If the koruna comes closer to the 30.000
level, we cannot exclude the CNB's intervention against it. The USD/CZK
should be curbed between 30.600 - 31.000. The EUR/CZK started at 30.330 and
the USD/CZK at 30.850 in the morning.
open high low close today (30.9.)
EUR/CZK 30.160 30.370 30.120 30.300 30.330
USD/CZK 30.890 31.050 30.790 30.900 30.850
Stepanka Kuzilkova, Investment Research, CSOB