The Czech currency is continuing to weaken against both significant world currencies. On Tuesday, the Czech koruna lost six halers against the euro, trading at 24.57 CZK/EUR. This was the weakest point since October of last year. Against the dollar, it weakened by 12 healers and traded at 22.93 CZK/USD around 5:00 PM, the lowest level since last December. The Patria Online server reported these figures.
According to analyst Jaroslav Tupy from Purple Trading, “the Czech koruna continues to weaken. Since the beginning of September, it has weakened against the euro by 50 halers, or almost 2.5%, and against the US dollar by 85 halers, or 3.8%.”
Tupy added, “The koruna is approaching the level at which the Czech National Bank began its foreign exchange interventions to support the currency.”
Next Finance analyst Marketa Sichtarova expects the koruna to weaken for a more extended period. “While in the first half of this year, the difference between interest rates in the Czech Republic and abroad, and especially the outlook for this difference, supported the koruna, now it is exactly the opposite. I therefore assume that the koruna will gradually move up to 25 crowns per euro,” said Sichtarova.
Jana Steckerova from Komercni Banky (KB) commented, “Regional currencies are still under pressure, which was caused by the surprising decision of the Polish central bank to cut interest rates last week. Speculation about possible cuts in domestic interest rates and further significant easing of monetary policy in Poland is pushing regional currencies to weaker levels.”