Czech koruna strengthens strongly against the dollar

Czech koruna strengthens strongly against the dollar

The Czech koruna has been strengthening in recent weeks against both the euro and the dollar. In the case of the euro, it hasn't been as affordable for holders of the Czech currency since March, when the coronavirus erupted. At the moment, it takes just CZK 26.21 to buy a euro. A month ago, euros cost CZK 26.80, which is good news for Czechs who waited until halfway through the summer holidays to travel abroad. A primary driver in the improved outlook for koruna is last week's approval by the European Commission of a €750 billion aid package for European economies. A total of €8.7 billion of those funds will be headed to the Czech Republic and into its automobile, hospital and construction sectors. Another €15 billion will be made available to it in the form of inexpensive loans. The constructive approach by the EU has helped ease fears over the future of a country whose economy is expected to suffer a nearly 10 percent drop in GDP. The koruna's strengthening against the dollar has been even more dramatic. A month ago, one dollar cost CZK 23.80 and going back to May it cost a remarkable CZK 25. But in July, as the situation around the pandemic began to deteriorate in the United States, the koruna began to gain in strength, even before last week's European aid package was approved. Today, the dollar can be bought for just CZK 22.30, the strongest showing for the koruna since 2018.