Czech Crown At Its Strongest Against Dollar Since September 2018
As the epidemiological situation in the United States worsens, the crown has grown in strength against the dollar. Today, it recorded the lowest CZK per USD since September 2018. Photo credit: Freepik / For illustrative purposes.
Czech Rep., Jul 28 (BD) – Today, the Czech crown reached a trading rate of 22.22 CZK/USD, approximately CZK 0.3 stronger than the Friday closing, and the strongest it has been against the dollar for almost two years, since September 2018.
The first half of 2018 was a strong period for the crown against the dollar, hitting a historic peak of just 20.26 CZK/USD in February 2018. Through September 2018, one dollar traded for between 21.80 and 22.24 crowns, a level not matched until now.
According to Jan Vejmělek, chief economist at Komerční Banka, the crown was boosted by the sell-off of the dollar on global markets, as the US currency suffers under the worsening epidemiological situation in the United States. Consequently, the euro is also recording peak strengths against the dollar: for the first time since September 2019, the euro traded at 1.18 USD/EUR. “The strong common European currency was then reflected in more valuable Central European currencies,” added Vejmělek, quoted in CTK.
The crown is also at its strongest level against the euro since mid-March, when the crown weakened significantly due to the state of emergency declared in the Czech Republic. Since mid-May, when the euro last peaked against the crown, trading at 27.72 CZK/EUR, the crown has been strengthening again. Today, the crown opened at 26.21 CZK/EUR. Before the coronavirus hit the continent, the rate was hovering just above 25 CZK/EUR.