The Czech currency slid against the euro immediately after the beginning of
trading to 30.100 from 29.900 and raised its losses in the afternoon. The
EUR/CZK closed at the level of 30.265. The koruna fell as the Chamber of
Deputies rejected the government' s package of tax adjustments followed by
crisis in the government coalition. The Prime Minister V. Spidla said, some
changes in the government might be on the way. The koruna's fall could be
also caused by the central bank's hidden interventions. The koruna softened
also vs. the dollar from the level of 30.430 to 30.900 in the end of the
trading.
The USD/CZK followed development on euro-dollar markets. The koruna
may be influenced by retail sales figure today, however, the market will
concentrate mostly on further news about current government crisis. The
EUR/CZK should move in the range of 30.150 - 30.450 today and the USD/CZK
should be curbed between 31.200 - 31.750.
open high low close today (16.9.)
EUR/CZK 29.900 30.270 29.900 30.265 30.310
USD/CZK 30.430 30.930 30.430 30.920 31.280
Stepanka Kuzilkova, Investment Research, CSOB