Yesterday the koruna reached a new maximum to the dollar, but weakened against the euro

On Thursday the Czech currency took advantage of the weak American currency and at 24.42 reached its historical maximum against the greenback, but together with the zloty slightly lost against the euro. In the afternoon CNB released its inflation report. In previous days most of CNB’s board members expressed their opinion that interest rates would slightly rise over the rates would slightly rise over the long-term period. The report did not confirm it, because the CNB increased GDP growth potential estimates, which implies less danger from inflation risks. The FX market reacted to the report gently and the Czech currency weakened slightly mainly due to foreign investor’s activities. Thus, tn the afternoon the koruna closed at 31.470 against the euro.

ČSOB - Investment Research