The National Bank of Slovakia’s (NBS) three interventions on the FOREX market greatly influenced the trading session on Monday. The situation was calm before noon and the SKK was traded at 40.800 SKK/EUR. The NBS stepped into the market for the first time shortly after noon when the crown hit its strongest ever level at 40.76 SKK/EUR. This was the signal for the central bank to intervene, Slovenska Sporitelna dealer Juraj Zabadal told SITA. The NBS purchases of foreign currency weakened the crown by 1 percent to 41.20/41.24 SKK/EUR. After the central bank abandoned the market late in the afternoon the Slovak currency slightly rebound to SKK/EUR 41.130/150.

Mr. Zabadal expects busy trading in the coming days. He said that pressure to strengthen the Slovak currency will continue, supported by activities of London players, who were absent from the market on Monday due to a public holiday. The dealer expects that the central bank will again be forced to step into the market, in a series of interventions. However, interventions themselves might not be sufficient, said the dealer. He expects the central bank will have to change its key interest rates.

Movement on the euro-dollar market was flat on Monday. However, the SKK weakening towards the euro upped the USD price in SKK by 30 hallers from 36.300 SKK/USD to 36.600 SKK/USD. The SKK also weakened against the Czech currency and their cross rate increased to 1.313/315 SKK/CZK.