The Czech koruna strengthened against the US dollar and the euro on Wednesday on news that initial vaccine tests by the company Moderna had been promising enough to continue to a second phase. The Czech currency strengthened to just under CZK 25 per dollar, while it gained CZK 0.24 on the euro to end the day at CZK 27.29/EUR. According to Patria Online, even the Prague Bourse made up its Tuesday losses, with the PX Index strengthening 1.11 percent to 878.57 points, thanks to gains by the company Avast and the listed banks. Along with news of the vaccine, talk in Europe of a €500bn support fund for the EU appears to have bolstered confidence in both the chances for the continent’s economy, but for the union itself. Whether the gains made by the koruna will be sustainable remains to be seen. With signals that deflation is setting in in the industrial sector, the country’s already low interest rates could come under pressure.
