Czech Koruna Goes Down with Increasing Trade Balance Deficit
The Czech koruna fell today after the report showed the nation’s trade balance deficit widened in August more than was anticipated by market analysts, making the koruna less attractive to investors.
The trade deficit rose to 33.65 billion koruna ($1.87 billion) in August from the shortfall of 12.8 billion koruna in July, compared to the median forecast of 16.0 billion. According to the Czech central bank, companies gave away 39 billion koruna as the dividend payments in August. The increased of the trade balance gap and the worsening balance of payment were a serious disappointment for investors.
USD/CZK climbed from 17.8520 to 18.0200 as of 15:51 GMT today, while the daily maximum was 18.095.
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Earlier News About the Czech Koruna:
- Czech Koruna Weakens as Government May Curb Gains (2010-08-05)
- Czech Koruna Rises After Parliamentary Election (2010-05-31)
- Czech Koruna Climbs on Industrial Data (2009-12-31)
- Czech and Polish Central Banks Leave Rates Unchanged (2007-12-19)