The koruna significantly weakened against the euro.

The koruna fell against euro to its weakest level in last four months after a few days of calm trading. The EUR/CZK reached the level of 30.440 from 30.270 during morning trading, broke the level of 30.800 in the afternoon and closed at 30.720. The robust fall was caused by sales of koruna from foreign bank. The decline in construction output released yesterday had no impact on Czech currency. The koruna firmed vs. the dollar as the dollar weakened against the euro on euro-dollar markets. The USD/CZK touched the level of 31.790 from 31.280 in the beginning of trading and closed at 31.630. The market will watch inflation figure today, which is supposed to decline at a record low. We expect the EUR/CZK to move between 30.650 - 30.950 and the USD/CZK should move in the range of 31.200 - 31.700. Construction output fell by 1.3% in June and adjusted for number of workdays was 0.1% lower. CNB foreign exchange rose to EUR 22bn in July.

          open	high	low	close	today (8.8.)
EUR/CZK	30.270	30.800	30.270	30.720	30.910
USD/CZK	31.280	31.790	31.265	31.630	31.680