Czech crown firms through CZK26.00/EUR for first time ever
Prague - The Czech crown this morning broke through the Kc26.00/EUR level for the first time ever and at one point traded at Kc25.97/EUR, following the publication of November inflation data, the highest figure in the last six years, Patria Online server said.
The unit also gained to the dollar, to Kc17.72/$.
The inflation figure was much higher than expected, reducing to minimum the probability of a rate cut in the foreseeable future, said Patria analyst Tomas Vlk. However, developments in world markets are a factor hindering the crown’s firming today, Vlk noted.
The dollar is trading at $1.4658/EUR, no great change from Friday. Markets are cautious ahead of the Fed’s meeting.
Year-on-year inflation in the Czech Republic accelerated to 5 percent in November from 4 percent in October, the highest figure since August 2001.
Prices of food and soft drinks contributed the most to the acceleration.
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