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July 3, 2018 12:00 am | FILED UNDER: business

Economic Slowdown Extends Crowns Loses To Euro

By ČTK Financial Chart on computer screen

Prague, July 3 (CTK) – The Czech crown extended losses to the euro, going down all the way to Kc26.17/EUR at one point in morning trade, but around 17:00 it traded at Kc26.12/EUR, a drop of 8 hellers from Tuesday’s close, the server Patrina Online has said.

 

Still, however, it was the lowest value since last summer.

 

The unit stayed motionless to the US currency at Kc22.42/USD.

 

No fresh domestic news was behind the currency depreciation today, said Patria Finance economist Tomas Vlk. Nor was the crown pulled down by other Central European currencies, he added.

 

“The development shows the crown’s potential stops to be attractive to foreign players holding large amounts of money, and so they are reducing their positions,” said Vlk.

 

The crown is less attractive to foreign investors, said Next Finance economists Marketa Sichtarova and Jiri Cihlar. With the approaching end of the central bank’s forex intervention regime (in April last year), they bet on the crown steeply rising once the bank quits the regime but that seems quite unlikely now, they said.

 

The crown will wipe out some of its losses in the coming weeks. “However, it will weaken moderately during the year because of a slowdown in the Czech Republic’s economic growth,” Sichtarova and Cihlar said.

 

Exchange rate of Czech crown:

 

previous close

today around 17:00

Kc/EUR

26.04

26.12

Kc/USD

22.42

22.42

 

Source: Patria Online

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