Czech crown weakens in spot market to lowest vs euro in 1-1/2 years

PRAGUE: The Czech crown weakened on Thursday to its lowest level against the euro since September 2015, falling more than half a percent.

The Czech central bank on Thursday kept its weak crown-policy in place on Thursday but dropped its previous guidance for a likely end of the regime around mid-2017, indicating a move is edging closer.

"Some investors who were speculating on the end of the exchange rate commitment already at this meeting apparently are selling crowns back into euros which is leading to losses for the Czech currency," Komercni Banka analyst Marek Drimal said.

"Holding crowns and anticipating the bank's next moves is very expensive for foreign investors."