The Czech crown exchange rate has been rallying to new record levels recently. Yesterday afternoon, the Czech crown climbed at 30.35 CZK/EUR for a moment. Just one year ago, the CZK was traded at 34,66 CZK/EUR, thus, it has surged against euro by 12.4% during last twelve months. The crown has jumped at 34.44 against dolar, the level of October 1999.
The Czech carmaker Skoda Auto suffers from the strong crown – 80% of its production heads abroad. The loss caused by the unfriendly exchange rate amounted CZK 700mil to CZK 1bn for the last year, according to management of the company. Skoda Auto wants to face the issue by putting pressure on domestic suppliers and reducing this year’s planned investments. The investments should be split into several years.
European companies follow their American colleagues. The index of business confidence in Eurozone rose in March due to better situation in the industrial sector. Consumers confidence was steady in March.
Industrial production prices increased in Eurozone by 0.1% in February, but they were lower by 1.1% on year-on-year basis. Similarly to situation in other countries and regions, the rising oil prices have substantial impact on the PPI in Europe.
The Eurozone’s rate of unemployment stayed at 8.4% in February. Spain leads the rate with 12.4%, Austria beats the region with 3.9% of unemployed workers.
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Radim Krejčí