The first day in April brought major moments to the Slovak currency when it broke through its strongest ever levels against the euro and firmed to 41.010 SKK/EUR. The beginning of the day indicated that the crown would weaken, along with other currencies, under the influence of foreign exchange purchases. On Tuesday morning the crown weakened from the initial level of 41.350 SKK/EUR to 41.400 SKK/EUR. At this level the development changed and the crown started firming as a consequence of excess offer of foreign exchange on the market. „It appreciated to 41.250 SKK/EUR when statements by the Governor of the National Bank of Slovakia (NBS) Marian Jusko at an international conference in Prague accelerated its firming,“ said Slovenska Sporitelna dealer Juraj Zabadal.

Mr. Jusko sees room for further appreciation of the crown. But this process should be based on a long-term improvement of economic indicators not only within foreign trade, but also within inflation and others.

„Thus the central bank gave its green light to further firming of the Slovak currency,“ said Mr. Zabadal. After Mr. Jusko’s statements the crown appreciated to 41.010 SKK/EUR, which is the strongest level so far of the Slovak crown towards its reference currency, the euro. „At this level investors started profit taking and the crown bounced back to 41.100 SKK/EUR,“ added the dealer.

According to Mr. Zabadal, the Slovak crown could appreciate in the days to come and move below 41.0 SKK/EUR. He does not expect any intervention from the central bank. In the event that investors collect their profits, the crown might weaken moderately, but not above 41.400 SKK/EUR.

The Slovak crown kept its four-year strongest level towards the U.S. dollar on Tuesday when it firmed from 37.90 SKK/USD to 37.70 SKK/USD. The dollar was quoted at 1.0896 USD/EUR. Against the Czech crown the Slovak currency oscillated around its strongest level since November 2001 when it stood at 1.286 SKK/CZK.