Czech crown firms to record Kc25.09/EUR
The Czech crown gained to an all-time high of Kc25.09/EUR this morning boosted by the excellent GDP growth for 2007, and also set a record to the dollar at Kc17.12/USD, Patria Finance analyst Tomas Vlk told.
Then the crown weakened to Kc25.20/EUR and Kc17.20/USD where it stood after 9:30 a.m.
Czech GDP grew by a record 6.6 percent in 2007, according to preliminary estimates, statisticians said today.
The crown reacted to the GDP results but then investors became uncertain before the level of Kc25.0/EUR, Vlk added.
“In these uncertain days, even an attack of the Kc25.0/EUR level may come, but in our opinion this would be just a swing,” said Tomas Volf of the firm Citco - financni trhy.
The domestic currency is now strongly overvaluated and it is only a matter of time when investors will take profits and send the crown back.
(CPA)
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