Koruna Gains From 16-Month Low on Current Account: Prague Mover
The koruna rebounded from its weakest level in 16 months after the Czech Republic unexpectedly posted its highest current-account surplus on record.
The koruna appreciated 0.3 percent to 25.836 per euro as of 5:39 p.m. in Prague, reversing an earlier 0.3 percent retreat to 25.988, the lowest intraday level since November 2011. The yield on 10-year government bonds dropped seven basis points, or 0.07 percentage point, to an all-time low of 1.67 percent, according to generic indexes compiled by Bloomberg.
The Czech current account, a broader measure of goods and money flowing into and out of the country, had a surplus of 27.7 billion koruna ($1.4 billion) in February, the statistics office in Prague said today. That is the best reading since Bloomberg began tracking the data in 2003 and compares with the median estimate of 11 economists for a 5.2 billion-koruna surplus.
“The February balance-of-payments data published today confirmed that the Czech koruna is safe in terms of external balance,” Jan Vejmelek, an economist at Komercni Banka AS (KOMB) in Prague, wrote in an e-mailed report. The figures “significantly exceeded the most optimistic market expectations,” he said.
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