Slovak koruna continued weakening yesterday

The Slovak koruna weakening continued also yesterday. It broke through the psychological level of 38.0 and lost to 6-month low of 38.11. The reason remains the same - risk aversion and sell-off on emerging markets. Today, the economic calendar is empty and so the international factors should remain dominant as all eyes will be on the US inflation. In the case that the data will not be dollar positive, the koruna might erase part of its losses. Nevertheless we see the space for any gains as quite limited. In our view there is more room for currency weakening towards 38.20 as the uncertainty will linger until the election.

ČSOB Investment Research