Much like its American and Polish counterparts, Prague’s stock exchange is on a roll, hitting levels not seen for six years. The PX index reached 1067.71 yesterday, a number not seen since August of 2011. This peak had been coming ever since a 5-year high of 1065 was achieved last week, but it still has a ways to go before it surpasses the 1092 from the beginning of August 2011. The Czech koruna may have made no gains against the dollar in yesterday’s trading, but it strengthened slightly towards the euro to CZK 25.57. All eyes are now fixed on the Czech National Bank, which is expected to raise its basic interest rate by 25 bps. Some economists warn that this key indicator, which has lain dormant for so long, could be jacked up 50 bps. This would have a knock-on effect on the foreign exchange markets, unlike the 25 bps alternative, which has already been priced into the koruna exchange levels.
