The Czech koruna weakened today and closed at 28,11 against the euro. The key negative impact came from Hungary. It is again the Hungarian problems with public deficits that push the HUF and all the region down. This time it turned up that even Hungarian public debt will be a serious problem for euro adoption. The CZK however stays quite resistant, comparing today losses of the CE currencies. Relative position of the CZK is better thanks to better condition of Czech public finance (although it isn´t excellent), compared to Hungary or Poland. Also, further increase in expectations that the Czech central bank will hike rates till the end of the year is positive for the CZK.
The koruna closed weaker against the dollar, too. The rate ended at 21,89 CZK/USD due to dollar firming against the euro. The USD/EUR now trades at 1,2807.