Prague - The Czech crown has dropped dramatically against the euro during trading Tuesday morning.
It takes 25.8 CZK to buy one euro at the moment.
The crown has also plunged drastically against the dollar. One dollar is now for 20.45 CZK. For months the dollar would not exceed 20 CZK.
"The risk aversion in the world is pending and European stock markets are around zero. Following the prolonged weekend, the Czech stock market is deep in minus. These circumstances are expected to cause further slide of the Czech crown as well as other currencies," says Patria Finance analyst Tomáš Vlk.
Experts explain the sudden plunge of the Czech crown was due to its overvalued strength in the past months. The Czech crown is expected to continue sliding against the euro, which may be up to 26.5 CZK soon.
The Bloomberg agency experts as well as governor of the Czech National Bank Zdeněk Tůma expect a slide of the Czech crown too.