The Czech koruna fell today on speculations that the nation’s central bank would cut interest rates as problems in the European Union led to a recession in the Czech Republic.
The Czech economy is strongly dependent on economies of other European countries (not a surprise for a country which is a part of the European Union) and therefore the problems of the eurozone had a big negative impact on country’s economic growth. Many important indicators, including retail sales, consumer confidence and inflation, were falling. It is logical to assume that Ceska Narodni Banka would consider lowering borrowing costs in such conditions.
USD/CZK rose from 20.7140 to 20.7770 as of 11:02 GMT today.
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