The main reasons from yesterday koruna's strengthening are following: the
market expects that foreign aid will start flowing to the Czech Republic and
will have to be converted into korunas and also most Czech insurance
companies are reinsured abroad and their payments will have to be converted
too. Due to above mentioned facts, the koruna firmed against the euro from
31.200 in the beginning of trading to the level of 30.900, however, it
closed slightly weaker at 30.980. The koruna also strengthened vs. the
dollar from 31.700 to 31.480 and closed at the level of 31.770.
We expect
the EUR/CZK to move in the range of 30.900 - 31.200. Unexpected news related
to floods may also influence the koruna. The USD/CZK should be curbed
between 31.400 - 31.900 today.
open high low close today (20.8.)
EUR/CZK 31.220 31.220 30.900 30.980 30.930
USD/CZK 31.700 31.770 31.480 31.770 31.690
Stepanka Kuzilkova, Investment Research, CSOB