Czech Koruna steadies near 25.50 Kč mark against the greenback following US election upset.
By BOHEMIST STAFF
PRAGUE – The strengthening of the US Dollar following the historic upset at the US elections earlier this month pushed the Czech Koruna to lows against the American currency for 2016, moving well beyond the 25 Kč marker, though after three days of non-movement, the rate has begun to settle around 25.50 Kč to US$1.
The Czech Koruna peaked against the dollar at 25.51 on November 20, nearly topping slightly higher rates posted in November 2015, but a minor setback for the greenback yesterday slowed the momentum, with the rate falling to 25.48 Kč at closing.
The slowing dollar added further good news for the Czech markets as the Prague Stock Exchange yesterday finally snapped a four-day slide, gaining 0.94 percent to close out at 892.29 points.
At a meeting on November 3, the Czech National Bank decided unanimously to keep interest rates unchanged at technical zero, saying it would continue using the exchange rate as an additional instrument for easing the monetary conditions. It did, however, renew its commitment to intervene on the foreign exchange market if necessary in order to weaken the koruna against the Euro so that the exchange rate is kept close to 27 Kč to the Euro mark.
The rate of the Koruna to the Euro stood at 27.02 at closing yesterday.