About Czech Republic

The crown corrected losses after the morning's fall to the dollar, firmed to Kc21.00/$ and closed at Kc21.03 at 5:00 p.m., and vis-a-vis the euro it was hovering around Kc28.00, server Patria Online has said, adding that the foreign trade results had no effect on it.

The foreign trade surplus reached Kc4.35bn for Oct, a bit more than the expected Kc4bn.

The result is no surprise, said Tomas Vlk of Patria Finance.

"Investors are focusing on other more attractive markets, for instance, Slovakia," said Next Finance analyst Vladimir Pikora.

The crown fell to the dollar to Kc21.12 in the morning on the US currency gain.

"Short-term speculators have been successful after a couple of days pushing the US currency to a stronger level to the euro beyond $1.33," said J&T analyst Lukas Ruzicka.

At 5:00 p.m. the dollar was weaker trading at $1.3315/EUR.

The European Central Bank will raise interest rates at a session on Thursday, and the crown can fall modestly as a result as it will less attractive in terms of interest rates, said Pikora.

Many players can be expected to take advantage of the weaker crown to prepare themselves for its firming in the future, he added.

source CTK:
http://www.ctk.cz/zpravy/anglicke_view.php?id=224555

Posted by Mikes on Wednesday, December 06, 2006 at 1:29 PM | Permalink