Monday, June 25, 2007

Czech Koruna Falls to 15-Month Low as Interest-Rate Views Spur Carry-Trade

(Bloomberg) -- The Czech koruna fell for a sixth day
as speculation the central bank will keep interest rates
unchanged at the lowest in the European Union this week attracted
carry-trade investors.

The Czech koruna, used by investors as a funding currency
for investments in higher-yielding assets elsewhere, slid to a
15-month low against the euro. The Czech benchmark rate is now at
2.75 percent after a quarter-point boost last month and will
probably be kept on hold at the central bank's meeting on June
28, according to a Bloomberg survey of economists.


Read more at Bloomberg Currencies News

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