Koruna Rallies Even After Central Bank Lowers Interest Rates
The Czech koruna rallied today, profiting from the general positive sentiment on the Forex market, even after the Czech central bank decided to lower interest rates.
The Czech National Bank lowered its key interest rate by 25 basis points to 0.5 percent. The bank explained its decision by negative outside influence and weak economic activity. Yet the positive impact of the European summit erased all negativity from the FX market and allowed the koruna to jump against the dollar despite the negative domestic fundamentals.
USD/CZK slumped from 20.6860 to to 20.1090 as of 14:31 GMT today.
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Earlier News About the Czech Koruna:
- Koruna Falls Amid Speculations About Interest Rate Cut (2012-06-28)
- Czech National Bank Maintains Interest Rates, Koruna Drops (2012-03-30)
- Czech Koruna Falls to 19-Month Low Against Dollar (2012-01-06)
- Czech Koruna Goes Down with Increasing Trade Balance Deficit (2011-10-13)
- Czech Koruna Weakens as Government May Curb Gains (2010-08-05)