The koruna entered the new week with Monday’s exchange rate of 27.13 per euro. Subsequently, it strengthened on Tuesday to 26.92 per euro and during Wednesday at one point rose to 26.78 per euro.
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“The scissors are closing between the rest of Europe and the Czech Republic. State restrictions are gradually increasing in other countries as well, which is why the Czech crown is no longer such a cinderella, “Petr Bartoň, the chief economist of the Natland Group, told Novinka.
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“The weak dollar also helps, 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,” he added.
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The koruna is also strengthening against the dollar, by 1.4 percent. One dollar rose to 22.92 crowns on Wednesday afternoon.
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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.
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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.
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