Czech Koruna Up As Czech Central Bank Holds Key Interest Rate At 1.25%

Extending its 4-day winning streak, the Czech koruna climbed to a 10-day high against the US dollar on Thursday morning following the Czech National Bank decided to retain its key interest rate unchanged at a record low for the second straight rate-setting session in November.

The Board decided to hold the two-week repo rate at 1.25%, in line with economists' expectations. Also, the discount rate was retained at 0.25% and the Lombard rate at 2.25%. Earlier on August 7, the central bank had lowered its two-week repo rate by 25 basis points from 1.50%.

The Czech koruna that ended Wednesday's trading higher at 17.541 against the greenback advanced 1.2 percent to 17.332 around 8:45 am ET. The domestic unit has gained more than 4.3 percent against the greenback thus far this week. The dollar-koruna pair is presently quoted at 17.42.

Against the euro, the Czech koruna rose to a 15-day high of 25.785 around 7:45 am ET and this may be compared to yesterday's close of 26.0435. A move above the 25.66 resistance may push the koruna to its highest level in nearly a month. The euro-koruna pair is presently quoted at 25.93.