The Czech koruna continues to beat the world's currencies. Is there a chance that the rate will strengthen further?

Press Release: The Czech crown celebrated 30 years of its existence last month, and it is celebrating its birthday with real vigor. Recently, it has consistently outperformed leading world currencies, including the euro and the US dollar. The koruna thus surprises a large number of domestic and global analysts -  but can her strengthening continue?

As the topic of our currency becomes more and more popular, XTB broadcasted on its YouTube channel last week stream, where the most important aspects of the current situation were summarized, and for those interested who would like more information, a analytical report focused not only on the present, but also on the historical events of our domestic currency and their impact on future monetary policy.

The fact that the crown will strengthen in the current situation was expected by many. To a large extent, this was due to global macroeconomic events. In particular, the weakening of the US dollar was very positive for smaller currencies. The amelioration of the energy crisis in Europe and the slow opening of China undoubtedly also had a considerable impact on the exchange rates. In addition to the koruna, the value of, for example, the Polish zloty or the Hungarian forint also began to rise. However, the growth was not as radical as that of the Czech crown. So what is so unique about our situation?

According to Jan Berka, editor-in-chief of Roklen24.cz, there are several unique factors behind this that distinguish us from our Visegrád colleagues. In the current situation, the koruna is beginning to receive the label of a "safe haven", mainly thanks to the Czech National Bank and its potential interventions, should volatility increase in the koruna. On the one hand, this fact attracts foreign investors thanks to higher exchange rate stability, and on the other hand, it discourages speculators. Moreover, thanks to the increased risk tolerance that we have seen in the financial markets in recent weeks, investments have started to move again to less developed markets. This further helps the crown, because even though the Czech Republic is considered "less developed", compared to other countries in this category, it is one of the strongest economies, thus investments in the Czech Republic can be considered less risky than, for example, in Poland or Hungary .

However, further growth of the koruna is uncertain. Pessimism is beginning to return to the financial markets, the energy crisis is not completely resolved and the future economic situation of the Czech Republic is doubtful. The development of the following weeks and months will be pivotal for the crown.

If you want to learn more about the topic, stream The Czech crown is the strongest since 2008! and analytical report 30 years with the Czech crown they are available for free on YouTube and the XTB website.

XTB is also one of the few brokers that offers investments and trading directly in CZK. In the platform, you can buy Czech titles (ČEZ, Colt CZ, Kofola and others), trade CFD currency pairs USD/CZK, EUR/CZK or the Prague Stock Exchange index CZKCASH, and when trading foreign shares and ETFs, it is possible to use conversion directly within the purchase. Learn more at https://www.xtb.com/cz