The Czech koruna fell against the euro today as the nation’s central bank warned about a possible intervention to curb excessive gains. The currency gained on the US dollar.
Many currencies of emerging markets were firm against the euro today but the koruna was not among them. The reason for this was the warning from the Czech National Bank that it will intervene on the currency markets if the koruna rises above the 27 per euro level. Analysts say that the currency will often test the resolve of Czech policy makers to keep the ceiling as the good performance of the nation’s economy should result in appreciation of the koruna.
USD/CZK went down from 25.0224 to 24.8240 as of 14:39 GMT today after rallying to 25.0600 earlier. At the same time, EUR/CZK advanced from 27.0870 to 27.1070.
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