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February 1, 2018 7:22 pm | FILED UNDER: business

Crown Closes at 5 Year High on News of Interest Rate Hikes

By ČTK

Prague, Feb 1 (CTK) – The Czech crown firmed to Kc25.17/EUR, which is its strongest closing value in more than five years, and vis-a-vis the US dollar it strengthened to Kc20.18/USD, its best value since the summer of 2014, according to data on the server Patria Online.

 

The currency gains were caused by today’s policy meeting of the central bank’s governing board that lifted the basic interest rate to 0.75 percent.

 

The central bank also resumed publishing estimates of the exchange rate development against the euro. It estimated the average exchange rate at Kc24.90/EUR this year.

 

“The bank envisages further decent gains (of the crown) to which the market responded immediately,” said Patria Finance analyst Tomas Vlk.

 

The crown’s closing value vis-a-vis the euro was last stronger before Christmas in 2012.

 

The crown will reach the Kc25/EUR level within a few weeks, said Next Finance company head Marketa Sichtarova.

 

Exchange rate of Czech crown currency:

 

previous close

today around 17:00

Kc/EUR

25.28

25.17

Kc/USD

20.29

20.18

 

Source: Patria Online

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