The Czech koruna exchange rate was influenced by overall regional mood. The forint jumped to 276.0 HUF/EUR despite the release of the new Hungarian convergence programme. It confirmed all information which leaked to the public last week – gross domestic debt is seen at 70.8 % of GDP in 2007 which is above the Maastricht criteria.
The Czech domestic situation still without any change – the Social Democrats refused invitation from prime minister Topolánek for talks about new (minority) government.
Fortunately, the koruna seems to be ignoring politics at all. Its rate should not break above 28.30 CZK/EUR tomorrow.
The dollar slipped to 1,2800 USD/EUR against the euro after the ZEW German confidence indicator fell to -2 points in August. We do not think this means change in ST dollar-negative trend and we wait for confirmation till Thursday’s further US economic data. However, the euro-dollar development sent the koruna to 22.00 CZK/USD.