“After a long time, the financial markets have taken a break from the unfavorable news from the war front today and appreciated the efforts of the Ukrainian president (Volodymyr Zelenský) for a diplomatic shift in resolving the conflict,” said Komerční banka analyst Jan Vejmělek.
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They are also strengthening other Central European currencies, which have weakened in recent days due to the war in Ukraine, warned Wood & Company analyst Vojtech Bohac.
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CNB intervention
The central bank launched intervention against the weakening of the Czech currency on Friday. The koruna and other Central European currencies considered risky assets by investors had previously lost sharply after the Russian army attacked Ukraine on February 24.
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“Demand for risk is also returning to the koruna and surrounding regional currencies. We are seeing a significant strengthening, especially for the pair with the dollar, “said Patria Finance analyst Tomáš Vlk. According to him, optimism has gained momentum today, despite the continuing risks.
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“Growth continues to take place in the absence of new bad news and, of course, with the motivation to take advantage of the previous significant drop in prices,” he said of the developments in the financial markets.
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