The koruna was losing ground, ending at its weakest against the dollar in almost seven months

Prague – Under the influence of the strengthening dollar, the Czech currency lost money on Monday. Against the euro, it weakened by 11 halers to 25.35 CZK/EUR, and against the dollar by 33 halers to 23.81 CZK/USD. It thus ended the weakest against the US currency in almost seven months. Information about October inflation had no effect on the development of the koruna exchange rate. This follows from the data on the Patria Online server and the comments of analysts. The Prague Stock Exchange strengthened at the beginning of the week.

“The strengthening American currency is putting the currencies of the entire Central European region under selling pressure,” said Komerční banka analyst Jan Vejmělek. According to him, the koruna thus depreciated by roughly half a percent against the euro. “It lost roughly ten pennies when it moved at 25.35 CZK/EUR in the afternoon,” he added.

Consumer prices in the Czech Republic rose by 2.8 percent year-on-year in October, thus year-on-year inflation accelerated from September’s 2.6 percent, the Czech Statistical Office announced today. The data did not surprise, domestic factors apparently play a small role in the weakening of the koruna, Patria Finance analyst Tomáš Vlk commented on today’s trading. According to Vejmělek, the development of inflation was in line with market estimates and the forecast of the Czech National Bank.

Inflation and its influence on the central bank’s decisions on interest rates may nevertheless support the Czech currency to strengthen before the end of the year. “The fear of rising inflation will be the theme that will dominate the pre-Christmas meeting of the bank board. Bets that the Czech National Bank will take a break from cutting interest rates before the end of this year will ultimately push the koruna for modest gains,” Next Finance analysts said .

The PX stock index added 0.3 percent to 1,670.08 points on Monday. He was mainly helped by the shares of Erste Bank, Monety Money Bank and insurance company VIG, the Pilulka chain also grew significantly. On the other hand, the energy company ČEZ lost. Market activity was low. This follows from the data of the stock exchange website.

None of the financial titles ended in the red. Erste Bank appreciated by 0.75 percent to 1,349 crowns, insurance company VIG by 1.37 percent to 739 crowns and Moneta by 0.51 percent to 119 crowns. Not only Komerční banka grew, but its securities did not fall in price and remained at the opening value of 823 crowns.

ČEZ will publish its economic results for the first three quarters on Tuesday. Experts contacted by ČTK estimate that the company’s net profit should decrease to around 27 billion crowns, which is about a tenth less year-on-year. He sees the main cause in the lower profit from the trade in commodities and in the persistent effect of the special tax on extraordinary profits. Today, CEZ shares fell by 0.83 percent to 900 crowns.

A significant profit was made by Pilulka, whose securities rose by 7.69 percent to 140 crowns. The arms company Colt Cz, the tobacco company Philip Morris CR, the beverage company Kofola and the solar group Photon Energy also grew. On the other hand, unmanned aircraft manufacturer Primoco closed trading with a loss.

Exchange rate of the Czech currency:

Source: Patria Online

CR stock exchange currency closing rates TABLE