Wednesday May 25, 2022

The koruna should not strengthen more sharply by the end of the year, analysts say

Analysts do not expect a strong increase in the koruna this year. On Thursday, the Czech currency strengthened against the euro to the strongest value in the last two years, when it strengthened to 24.38 K / EUR before noon. According to them, the main reason is that the central bank has speculated about two years of rising rates.

“By the end of the year, the koruna will continue to weaken towards 25.00 K per euro,” said Tom Vlk, an analyst at Patria Finance. The exchange rate of the dollar equals slightly below 18.00 K / USD.

According to Vlk, after the assertion of one bank board of the Czech National Bank, speculation about an early increase in rates has subsided, which is taking one of the sources of growth.

Although the Czech economy and the euro area are relatively sunny, markets may fall for a weak year, which would worsen the potential of risky assets and the koruna, he noted.

The koruna strengthened to a two-year high on Thursday, thanks to the strengthening of the Polish zloty and due to speculation that the NB will make a “jestb” comment and increase the rates of the five-year meeting, agreed Raiffeisenbank analyst Helena Horsk. The central bank, on the other hand, provided a pessimistic picture and postponed the rate to the end of 2011.

In the horizon of the week, Horsk expected the koruna to stagnate at 24.32 and 24.70 K per euro. If the Czech economy slowed sharply at the end of the year and the inflow of free liquidity from abroad will move outside the Czech Republic, the koruna will weaken to the level of 25 K per euro by the end of the year, the analyst added.

“The koruna soon weakened above 24.55 K / EUR. She tried to go in, but the level of 24.60 K per euro u gave a weakened.

We expected the correction of the hardened event, “said Next Finance analyst Markta ichtaov. However, according to n, Domc me cannot ignore some influences for his messenger for a long time. “It will be tough in the next few days, but it will work. By the end of November, you will be sent to the euro docme, “she remarked.

The strong koruna is usually supplemented by exports, which, when switching to euros or dollars, lose billions in profits. On the other hand, fixed prices make imports cheaper, especially oil, natural gas and consumer goods.

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