The Slovak koruna
weakened from the opening level of EUR/SKK 32.780 to above
EUR/SKK 33.400 on Tuesday. Central bank started to intervene directly on the FX
market early in the morning and we estimate the amount of interventions at EUR 1.5 bn. NBS also rejected all bids in the regular 2-week repotender. As a result the short
end of the money market curve is down and helps internationals to finance their positions
at longer part of the curve.
Today, the local economic calendar is empty. The regular government meeting is on
the agenda but with nothing interesting on the agenda. We think that FX interventions
could continue today if London puts more pressure on the currency (appreciation).