The central bank of the Czech Republic raised interest rates today, but that did not prevent the Czech koruna from falling against the US dollar.
The Czech National Bank announced today:
At its meeting today, the CNB Bank Board increased the two-week repo rate (2W repo rate) by 25 basis points to 1.50%. At the same time, it increased the Lombard rate to 2.50% and the discount rate to 0.50%. The new interest rate levels come into effect on 27 September 2018.
Yet the dollar managed to outperform the koruna, as well as other European currencies, as traders were expecting an interest rate hike from the Federal Reserve.
USD/CZK rose 0.45% to 21.8531 as of 16:51 GMT today.
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