Czech Koruna Rises, In Danger from Falling Inflation

The Czech koruna rose today even as falling inflation sparked talks about possible intervention. Some analysts think that it is a good time to sell the currency.

Annual inflation decelerated from 1.4 percent in July to 1.3 percent in August. Month-on-month, consumer prices fell 0.2 percent. Policy makers have exhausted room for additional monetary easing after cutting interest rates three times last year and now are debating about necessity of a currency intervention.

USD/CZK fell from 19.5950 to 19.4730 as of 16:44 GMT today.

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