Koruna strengthens to 2-month high

by   CIJ iDesk I
2020-05-29   12:41

The Czech koruna strengthened yesterday against the euro and the United States dollar, rising to 26.95/EUR and 24.38/USD. It's a highwater mark for the currency which began to lose value during the coronavirus and hasn't been this strong since the middle of March. Patria Online notes that while the currency rose in value, the Prague Bourse fell in value after four consecutive days of gains. While economists see the potential for further gains in value for the currency during the second half of 2020, they warn against overlooking the potential for the Czech National Bank to cut interest rates again in the meantime. Despite the gains in value for the Czech currency, one-quarter of the companies in the country have begun laying off employees and one-fifth have cut wages, according to a new study by the consultancy Randstad. The biggest number of layoffs came in the automobile sector, while staff from hotels and restaurants have been shifting to logistics. IT companies and those providing services to other companies have barely even noticed the crisis in their bottom line.