Markets

Czech central banks intervenes against koruna

PRAGUE (AP) — The Czech Republic's central bank says it has decided to use foreign-exchange interventions to weaken the local currency, the koruna.

In a statement Thursday, the bank said it is aiming to stabilize the exchange rate against the euro at around 27 koruna ($1.3). After the announcement, the Czech currency dropped to the weakest level since 2009.

It is expected the move, which was partly prompted by surprisingly low inflation rates, will increase some imported goods prices, including fuel, but that the weaker currency will have a positive impact for Czech exporters.

The bank started warning it might take such a step a year ago. To help the struggling economy, the central bank cut its key interest rate to a record low of 0.05 percent in November.

Related Headlines

  • No easy bailout plan for Ukraine

    Ukraine needs money, and fast — in weeks, not months. But bailing out the country of 46 million people will not be as easy as simply writing a big check. For one, Ukraine has ... 

  • Recep Tayyip Erdogan

    Turkish lira hits low as central bank stays put

    Turkey's currency, the lira, has fallen to a record low after the central bank decided against supporting it with an interest rate increase. The lira has dropped recently amid ... 

  • Bank of England chief grilled over forex scandal

    Bank of England Governor Mark Carney on Tuesday sought to shield his institution from being dragged further into a global scandal over the alleged manipulation of foreign ... 

  • Eurozone unemployment reaches new record high

    The number of unemployed in the 17-nation eurozone reached a record high in September as the bloc's nascent recovery failed to generate jobs, official data showed Thursday.