Koruna Slides To 6-day Low Against Dollar As Czech Central Bank Holds Rate
March 24 2011 - 9:51AM
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The Czech koruna gave back some of its early gains versus the US
dollar in New York morning following the Czech central bank
decision to maintain its key interest rates for the seventh
rate-setting session in a row.
The koruna thus reached a 6-day low of 17.3940 against the US
dollar around 9:15 am ET and the pair then exhibited sideways
trading. On the downside, the domestic currency may find target
around the 17.73 level. The dollar-koruna pair that was worth
17.3205 at Wednesday's close is currently quoted at 17.34.
The Czech National Bank kept the benchmark two-week repo rate
unchanged at 0.75 percent. The decision was in line with
expectations. The repo is the rate paid on commercial banks' excess
liquidity as withdrawn by the central bank in two-week repo
tenders.
The central bank's previous policy change was in May last year,
when the key interest rate was lowered by a quarter-percentage
point from 1 percent. Today, the bank also held the discount rate
unchanged at 0.25 percent and the Lombard rate at 1.75 percent.
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