The Czech koruna slightly weakened today, closing at 28,02 CZK/EUR. A strong influence of the regional mood still prevailed today. In the morning, Czech October CPI was released. The data showed easing inflation, which combined with strong CZK rate advances expectations for another rate hike to early 2007.
The CZK have lost also against the US dollar and ended at 21,98 CZK/USD. The move was boosted by a slight dollar firming on international markets today, as the focus shifted from elections in the USA. The market awaits tomorrow US foreign trade data. These however didn´t influence much the market last months, as the deficits are entirely covered by foreign purchases of US securities.