Czech crown trades at Kc25.03/EUR, strongest since mid-April

The other Central European currencies firmed as well, mainly due to an increased investor interest in risk assets, analysts said.

Owing to a lack of news from the Central European region, the positive development in the world affected the crown and the regional currencies today, Patria Finance analyst Tomas Vlk said.

Markets may recover after a short break, which may be a signal for the crown to move below Kc25.00/EUR, said Vlk.

According to Komercni banka analyst Jan Vejmelek, markets may see the Czech National Bank (CNB) react to the sudden firming of the crown below Kc25.00/EUR.

"First of all, meeting of the CNB governing board, which will discuss a new forecast, is approaching (it will take place on the first Thursday in August). Second, we have an experience with development in April when the crown's firming below Kc25.00/EUR led to a series of verbal interventions and to interest rate cuts at the board's meeting in May," Vejmelek said.

Author: ČTK
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