(Jan Poulík) While throughout the last week nothing could stop the crown’s strengthening and its breaking through the level of CZK17 against the D-mark, yesterday after a short period strengthening to the 17.35, the crown collapsed to the 17.65.
The only positive change since the last week has been yesterday’s release of the inflation’s figures. Despite the market’s expectation the m-to-m figure about 2.3%, the inflation was 1.9% and the y-to-y figure was found safely in the CNB’s range –6.1%.
The current collapsing of the crown has been caused mainly by foreign investors’ profiting and their escaping from the Czech currency because otherwise they might loose their positions either in USA (Dow Jones has been weakening slightly) or in Russia and other emerging markets (Hong-Kong).