The Czech koruna sank today due to concerns that deflationary pressure may lead to additional monetary easing from the nation’s central bank. The currency fell more than 1 percent against the US dollar.
Vladimir Tomsik, Vice Governor of the Czech National Bank, talked about “strong deflationary pressures”, which “may have a negative impact on domestic real demand”. It looks like economic problems of the eurozone spilled over to other countries of the European Union. As a result, it looks possible that the cap on the koruna will stay in place past 2016.
USD/CZK climbed from 23.2500 to 23.4879 as of 15:18 GMT today.
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