Koruna weakness continues, falls to 25.81/€

The Czech koruna's slide continued Thursday with its value falling by nine cents to 25.81 per euro. The Czech Press Agency quotes analyst Jan Berka as blaming the current weakness of the Czech currency to nervousness over developments in Turkey, where the lira has plummeted in value thanks to budgetary deficits and geopolitical instability. Berka says currency traders are throwing the currencies of developing markets into the same basket. If the current downward trend continues, Berka warns that the Czech National Bank could react by raising interest rates again, possibly as soon as September.