Czech crown surges to 3 1/2-year high

London

THE Czech crown surged almost 1.5 per cent to its highest level against the euro since November 2013 on Thursday, after the country's central bank scrapped the cap on the currency it had in place for 3-1/2 years.

Investors had been alert to the possibility that the Czech National Bank could end the intervention regime that has kept the crown on the weak side of 27 per euro as soon as Thursday, meaning the fallout from the move was relatively limited, with little spillover into other currencies and markets.