Koruna Slides Ahead of Inflation Report
The Czech koruna slipped today on speculations that tomorrow’s report will show inflation rising slower than estimated by the nation’s central bank as the European crisis and the domestic spending cuts deterred economic growth.
Analysts estimated that consumer prices rose 3.4 percent in September, while the central bank’s forecast was 3.4 percent. Inflation was 3.3 percent in August. Economists are worried that the decrease of investment spending and the increase of sales tax put pressure on the economy. Europe’s crisis does not help the Czech economy either.
USD/CZK rose from 19.1215 to 19.2285 as of 14:50 GMT today.
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Earlier News About the Czech Koruna:
- Koruna Hurt by Politics (2012-08-30)
- Czech Koruna Falls as Traders Believe Interest Rate Cut Coming (2012-08-24)
- Koruna Rallies Even After Central Bank Lowers Interest Rates (2012-06-29)
- Koruna Falls Amid Speculations About Interest Rate Cut (2012-06-28)
- Czech National Bank Maintains Interest Rates, Koruna Drops (2012-03-30)