While the Czech koruna hits 3-year low,…
…the Hungarian forint continues in its rally
Yesterday, the Czech koruna hit its 3-years low when it weakens to 26.18 EUR/CZK. The koruna was already hit last Wednesday by worse-than-expected GDP figures and thenceforth lost more than 1%. The sell-off of the Czech currency has continued even this week. There might have been several other factors behind the weakening of the Czech currency. Some effect could have IMF’s comments. The fund expressed its support to Czech central bank’s plan to intervene to weaken the koruna if necessary. Moreover, we do not exclude a possibility of carry trades between the Czech and the Hungarian currency, which could explain the recent regional decoupling. While the koruna has lost almost 2% of its value from the beginning of May, the forint by the same time strengthen by almost 3%. Thus, the Hungarian currency shortly got below 290 EUR/HUF.
Click here to read the full report: FX Daily
KBC