Czech Koruna Rises After Parliamentary Election

The Czech Koruna jumped today after the parliamentary election gave most votes to the parties determined to cut the budget spending, removing the concerns of the market participants that the election will be won by the parties intending to increase the social spending.

Petr Necas, the leader of the Civic Democratic Party, said: “We have to send a message to the international investment community about responsible budget policy”. The investors expect that the new government will perform the fiscal cuts and will implement the much-needed reforms in the healthcare and pension sectors.

USD/CZK traded today at 20.736 as of 11:06 GMT after opening at 20.972.

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