The Czech koruna weakened today on speculations that the nation’s central bank would be forced to cut its interest rates amid global economic slowdown that threatens to damage the Czech economy.
The data from around the world, including Japan and the European Union, signals about global slowdown that will reduce demand for Czech exports. Investors thought that the central bank has no choice but cut interest rates to support the economy. Some analysts say that the bank would reduce its main rate from 0.5 percent to as low as 0.05 percent by the end of this year.
USD/CZK went up from 19.8330 to 19.8755 as of 14:41 GMT today.
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