The koruna continues to weaken, today it lost roughly a dime against the euro and the dollar

The koruna continues to weaken, today it lost roughly a dime against the euro and the dollar


Euro, dollar and crown – illustration photo.

Prague – The koruna continues to weaken against the euro, at 17:00 it traded at 23.82 CZK/EUR, compared to Monday evening it lost 11 pennies, making it the weakest in recent more than a month. Compared to the American currency, the Czech currency also took a turn for the worse today, weakening by 12 halers to 22.21 CZK/USD. This follows from data from the Patria Online server.

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According to analyst Jaroslav Tupé from Purple Trading, negative sentiment on the financial markets and problems surrounding the American banking sector weigh on the crown. Also according to Jan Vejmělek from Komerční banka, the global financial markets remain marked by problems in the American banking sector and the efforts of the American administration and the central bank to prevent any escalation and spread of problems to other banks or sectors. “There was a noticeable calming down in the markets, however, volatility remains elevated,” he pointed out. According to him, Central European currencies have also calmed down, including the Czech crown.

“During the first hours of today's session, it had a tendency to weaken in connection with the high risk aversion on the market. The exchange rate briefly reached almost 23.85 CZK/EUR. The last time the koruna was this weak was more than a month ago. But in the afternoon it was already almost ten pennies stronger,” he said. However, shortly before 17:00, according to data from Patria Online, it returned to above 23.80 CZK/EUR.

The koruna has been weakening against the euro since the beginning of March, when it improved its more than fourteen-year high and reached 23.38 CZK/EUR. The last time it was stronger was in July 2008, when the rate was just below 23 CZK/EUR.

After three previous declines, the Prague Stock Exchange rose today by 0.67 percent

After three previous declines, the Prague Stock Exchange rose today. The PX index rose by 0.67 percent to 1355.20 points. With the improved mood on foreign stock markets, Erste Bank shares added more than two percent, and securities of the energy company ČEZ also pulled the stock market higher. This follows from the website of the stock exchange and the statements of analysts. The Czech koruna weakened against the euro and the dollar by roughly a dime.

“The sharp decline in the stock markets, which caused the collapse of three overseas banks, is forgotten. Investors thereby signal that they consider this problem resolved, the steps taken by the regulators to stabilize the situation sufficient, and therefore do not expect further escalation,” said Komerční banka analyst Bohumil Trampota. Western European stock exchanges corrected part of Monday's significant losses today, and the improved mood helped the Prague Stock Exchange to make gains, added Josef Dudek, broker of Fio bank.

Erste Bank's shares, which fell the most on Monday, rose the most today, Trampota pointed out. They rose by 2.12 percent to 789.20 crowns. Komerční banka's securities also rose by 0.71 percent to 708 crowns, while Moneta Money Bank's shares, on the other hand, lost 0.12 percent to 83.30 crowns. The securities of the insurance company VIG also fell by 0.84 percent to 590 crowns.

The shares of the energy company ČEZ, which were traded the most today, returned to growth. “ČEZ, in anticipation of strong results that will be announced next Tuesday, ended today at CZK 1,011, which corresponds to a growth of 1.10 percent,” noted Trampota. The securities of the beverage manufacturer Kofola improved by 0.82 percent to 245 CZK. Shares of the tobacco company Philip Morris fell by 0.57 percent to 17,360 crowns.

Czech currency exchange rate:

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Today around 5pm







Source: Patria Online