(Jan Klenor) Trading with the crown started with high activity this morning -- the crown strengthened to 18.42, only to return to 18.50. We expect to see high volatility in the crown, which should move between 18.40-60. FRA's CZK6*12 were sold instantly after entering the market at 14.85% p.a. Short-term interest rates are coming down, but there are still wide spreads on the inter-bank market, due to fears of possible interest rate hikes. Today's 6M PRIBOR might be fixed at 16% p.a. (compare to yesterday PRIBOR 6M 16.27).
CZK/USD 32.88, while the U.S. dollar is weakening against the German mark: USD/DEM 1.7765.