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Slovakia: Crown Firms To All-Time High
The SKK/EUR exchange rate strengthened to an all-time record during trading yesterday, firming by 0.2% a d/d to close at 37.37, market dealers reported.
The SKK/EUR exchange rate strengthened to an all-time record during trading yesterday, firming by 0.2% a d/d to close at 37.37, market dealers reported. They explained that the local currency dynamics were still dependent mostly on the other regional currencies and in particular on the Polish unit. The strengthening of the latter was based on the positive perceptions of the investors about the new finance minister in Poland and the high chances that the Polish parliament approves the budget this week. Accordingly, the crown was expected to have a potential for further gains against the euro in the coming weeks.
Earlier, analysts expressed expectations that the entry of the local currency in the ERM II would isolate it from the influence of the exchange rates of the other regional currencies. These expectations, however, have proved so far wrong as the Slovak market is still too small and is considered as a part of the overall Central and Eastern European market.