Prague – On Thursday, the Czech currency strengthened by five pennies against the euro to 25.25 CZK/EUR, supported by the statement of the Governor of the Czech National Bank (ČNB) Aleš Michl. Against the dollar, the koruna weakened by five halers to 23.31 CZK/USD. This follows from the data on the Patria Online server and the comments of analysts. The Prague Stock Exchange grew for the sixth time in a row.
The Czech koruna was probably helped by the governor of the CNB, who repeated at the Forbes conference in Karlovy Vary that, according to him, a further drop in interest rates needs to be approached with caution, said Komerční banka analyst Jaromír Gec. “His words were dampened yesterday (Wednesday) by the statement of bank board member Tomáš Holub, who, on the other hand, sees room for a faster drop in rates,” he added.
Next Finance analysts also associate the further development of the Czech currency with the progress of the central bank. “With regard to the koruna, it will be decided whether the Czech National Bank will take a break in lowering interest rates by the end of the year or not,” they wrote. They pointed out that similar mentions from Holub will harm the crown. “They increase the probability of a further decrease in its interest rate attractiveness,” they added.
Purple Trading analyst Jaroslav Tupý pointed out that the Czech currency did not react to today’s interest rate cut by the European Central Bank. At the same time, according to him, the reduction of rates against the euro could help the koruna to stay at stronger values in the vicinity of CZK 25.00/EUR, he added.
However, the stock exchange index PX strengthened only slightly on Thursday, by 0.03 percent to 1612.97 points. He was mainly helped by the shares of the energy company ČEZ and Komerční banka. On the contrary, Erste Bank and Moneta Money Bank lost. This follows from the data of the stock exchange website.
The total volume of transactions on the Prague market on Thursday reached 324 million crowns. More than a third of this went to ČEZ shares, which appreciated by 0.76 percent to 861 crowns. Arms company Colt CZ improved by half a percent to 605 crowns, and beverage company Kofola grew by 1.53 percent to 332 crowns.
On the contrary, two out of three banking titles ended in the red. Erste Bank wrote off 0.87 percent to 1259 crowns and Moneta 0.89 percent to 110.80 CZK. “Komerční banka went against the flow and increased the profits of the previous days by 0.5 percent to CZK 811.50,” said Fio banka analyst Martin Singer.
Exchange rate of the Czech currency:
| Previous conclusion | Thursday around 5:00 p.m | |
| CZK/EUR | 25,30 | 25,25 |
| CZK/USD | 23,26 | 23,31 |
Source: Patria Online
CR currency end of exchange rates TABLE
Source: www.ceskenoviny.cz
