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December 27, 2017 5:30 pm | FILED UNDER: business

Crown Stumbles to 3 Month Low Against Euro

By ČTK

Prague, Dec 27 (CTK) – The crown fell to the euro to the weakest level in almost three months on the first day after the Christmas holidays and around 17:00 was over 10 hellers down at Kc25.90/EUR, while to the US dollar the crown was flat, closing at Kc21.78/$, according to data from the Patria Online server.

 

In the afternoon, the crown even dropped to Kc25.95/EUR.

 

“The Czech currency thus loses two thirds of a percent and is the weakest since the beginning of October,” said Komercni banka economist Marek Drimal.

 

Even the confidence indicators for December, released by the Czech Statistical Office (CSU) this morning, did not help the crown. Confidence in the Czech economy increased to the highest level since 2008, he added.

 

Some investors are getting rid of the Czech currency because it is expensive for them to own it before the turn of the year due to the payments that Czech banks have to make to the Single Resolution Fund, Drimal noted.

 

Due to the deferred accounting on the interbank market, this influence will end on Thursday.

 

“The crown should therefore wipe out at least a part of today’s losses and by the end of the week should approach the level of Kc25.70/EUR where, according to our outlook, it will close this year,” Drimal added.

 

He expects the crown to firm further next year.

 

Rate of Czech crown:

 

Previous close

Around 17:00 today

Kc/EUR

25.77

25.90

Kc/USD

21.77

21.78

 

Source: Patria Online

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