The Slovak koruna started the session in a
calm atmosphere oscillating close to the
level of EUR/SKK 35.50. Things changed in
the afternoon, when the koruna hit a new alltime
high of EUR/SKK 35.456 boosted by
the positive sentiment in the CE region. The
central bank announced yesterday that it
sold EUR 80 million in October due to the
foreign reserves optimization. No further
details are known mainly regarding the fact
whether the sale was done in the local
market. From April this year, the bank has
already sold EUR 219 million of earnings
from its reserves.
The local market will continue to lack any
domestic driving factors today and looks to
track global FX development. The currency
has the room to move in either direction from
present levels. If the global sentiment will
further support region’s markets, the koruna
might achieve further gains. However, we
do not assume the unit to take positions
stronger than 35.30 EUR/SKK in the
short-term.
(CSOB - Investment research)