The koruna is also strengthening significantly against the US dollar. In the last two days of the dramatic census in the US election, it has gained more than two percent against it. On Thursday afternoon, the exchange rate was around 22.60 CZK / USD.
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“Compared to the uncertainty surrounding the US election, the Czech uncertainty is relatively smaller and the level of uncertainty is the main thing that determines currency prices today,” said Petr Bartoň, Natland Group’s chief economist.
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The koruna and other regional currencies are weakening in times of social and economic turmoil, as investors, like shares, consider them risky assets. This was very evident in both waves of the coronavirus crisis.
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The value of the koruna fell sharply in the second half of March, when it was torn down by fears of the global spread of covid-19. It reached an imaginary bottom on March 24, when one euro rose to 27.81 crowns.
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Later, it started to strengthen again, at one point it even approached the limit of 26 crowns per euro. However, with the deterioration of the epidemiological situation in the Czech Republic, it began to weaken again in the autumn.
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