PRAGUE, July 1 (Reuters) - The Czech crown currency rate is assisting the economy as it is substantially below record highs last year and close to levels seen in late 2008, central bank chief Zdenek Tuma said on Wednesday.
The crown hit 25.751 to the euro on Wednesday, the highest level since mid-December, but was still weaker than in most of the fourth quarter.
'Definitely the Czech economy is, from the currency point of view, under significantly lower pressure (than last year),' Tuma told a news conference.
'In this respect the Czech crown certainly contributes to the Czech economy's adjustment to the shock,' he said.
Some economists have said the crown's recent strength could slow an expected economic recovery as many believe the central European export-reliant economy is past the worst decline and could pick up next year.
The Czech crown has led gains among central European peers with a 3.4 percent rise in June, lifted by the unwinding of long Polish zloty/Czech crown trades.
The unit had fallen almost 23 percent by Feb. 17 from a record high of 22.925 to the euro hit on July 21 last year as investors dumped emerging European assets when the financial crisis swept through the region in the second half of the year.
Strategists have remained sceptical of market rallies in central Europe this year. The central European economy shrank by a record 3.4 percent in the fourth quarter and analysts say it will not recover until the euro zone, Czech Republic's main trading partner, picks up.
(Reporting by Jana Mlcochova, writing by Jan Lopatka, editing by Mike Peacock) Keywords: FINANCIAL CZECH/ (prague.newsroom@thomsonreuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The crown hit 25.751 to the euro on Wednesday, the highest level since mid-December, but was still weaker than in most of the fourth quarter.
'Definitely the Czech economy is, from the currency point of view, under significantly lower pressure (than last year),' Tuma told a news conference.
'In this respect the Czech crown certainly contributes to the Czech economy's adjustment to the shock,' he said.
Some economists have said the crown's recent strength could slow an expected economic recovery as many believe the central European export-reliant economy is past the worst decline and could pick up next year.
The Czech crown has led gains among central European peers with a 3.4 percent rise in June, lifted by the unwinding of long Polish zloty/Czech crown trades.
The unit had fallen almost 23 percent by Feb. 17 from a record high of 22.925 to the euro hit on July 21 last year as investors dumped emerging European assets when the financial crisis swept through the region in the second half of the year.
Strategists have remained sceptical of market rallies in central Europe this year. The central European economy shrank by a record 3.4 percent in the fourth quarter and analysts say it will not recover until the euro zone, Czech Republic's main trading partner, picks up.
(Reporting by Jana Mlcochova, writing by Jan Lopatka, editing by Mike Peacock) Keywords: FINANCIAL CZECH/ (prague.newsroom@thomsonreuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.