PRAGUE (Thomson Financial) - The Czech crown stabilised in midday trade at levels around 24.85 to the euro, close to its old record, after it soared to a new all time high to the euro in illiquid overnight trade.
The crown briefly jumped 7.9 percent to 23.00 to the euro late on Sunday, Reuters reported, catching the market by surprise.
One dealer said the crown had strengthened past 24.80 to the euro, compared to a previous record of 24.83 reached in early March, and triggered stop losses amid illiquid trading, and the problem spiraled after a trade for 23.500 was registered.
"Technically, we reached some levels that were a (long term) target," the dealer said.
"I would not be surprised to see the crown trade weaker now."
Driven by a strong economy and exports, and a shrinking negative interest rate differential with the euro zone, the crown has been the world's best performing currency against the euro over the past year, gaining almost 12 percent to the euro year on year.
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