Koruna Gains to Six-Week High as Singer Sees ‘Dramatic’ GDP GainKrystof Chamonikolas
The Czech koruna strengthened to a six-week high as central-bank Governor Miroslav Singer said the economy has undergone a “dramatic” improvement.
The bank’s intervention to weaken the koruna in November 2013 and its cap on gains at around 27 per euro have averted deflation and spurred domestic demand, Singer told a seminar in Prague. The economy, which is recovering from its longest recession on record, grew 2.4 percent in the third quarter from a year earlier, the statistics office in Prague said on Nov. 28.
“We are experiencing quite a dramatic change in the pace of growth,” Singer said. While inflation stays “exceptionally low” at 0.7 percent, it is beginning to be “generated inside the economy” by local demand, he said.
The koruna appreciated as much as 0.2 percent after the governor’s comments to the strongest intraday level since Oct. 20, before paring the gain to 0.1 percent at 27.572 per euro as of 12:06 p.m. in Prague.