The koruna did not resist further regional sell-off and weakened once more today. Its euro exchange rate moved another 10 hellers down to 28.20 CZK/EUR at the end of Monday’s session. The dollar fell to 2-month low against the euro (1,2940 USD/EUR) which in fact means appreciation of the koruna to 21.80 CZK/USD.
Domestic political situation still without any change. Paroubek and Topolanek were not able to reach any progress at their morning negotiations. The two parties (ODS and CSSD) have not find an agreement on either programme or procedural issues. The CZK could be also influenced by talks on euro-adoption delay due to fiscal situation of the Czech republic.
No domestic economic news had impact on the currency. Tomorrow we expect the koruna in range 28.10 to 28.30 CZK/EUR.