The Czech crown has hit a near eight-year high against the U.S. dollar and surged to its strongest level against the euro in more than two years. This offers notable benefits for those earning a Czech salary and for Czechia-based travelers, while challenging investors holding foreign assets.
The crown’s recent impressive run
At the time of writing, the Czech crown stands at around CZK 20.5/USD, its strongest level since January 2018. In the first half of 2025, the crown gained about CZK 4 against the dollar, notably marking its best half-year performance since 2008.
The crown has also made a strong run against the euro in the past year, standing at CZK 24.2/EUR currently, which is its best level against the common currency since late 2023. The crown has appreciated steadily since the beginning of the year, gaining more than CZK 1 against the euro.
The impact on the consumers and investors
The crown’s rise against the dollar and euro has direct effects on everyday life. First, the stronger crown against the dollar carries mixed consequences. Travelers to the U.S. will pay less in crown terms, making vacations and imported goods more affordable.
On the other hand, investors holding U.S. dollar assets have experienced losses, with the currency’s appreciation contributing to a near 15-percent decline in dollar-denominated portfolio values between February and July this year.
When it comes to the euro, Czech residents planning trips abroad in eurozone countries for the autumn or winter now benefit from cheaper holidays overall.
Retailers importing products from eurozone countries may see lower costs, potentially easing consumer prices. At the same time, those holding euro-denominated savings or investments could see modest reductions in returns.
Analysts emphasize that monitoring Czech National Bank (CNB) decisions will be key to understanding whether the crown’s strength will continue in the coming months. Last Wednesday, the CNB kept the base interest rate at 3.5 percent to avoid shaking the economy, and to avoid encouraging excess borrowing or spending.
Expert perspective
Jaroslav Tupý, analyst at Purple Trading, told Forbes CZ: “The Czech crown is still benefiting from positive sentiment on financial markets…which plays into the hands of Czech crown traders.”
Tupý added: “Given that both the CNB and the European Central Bank are now favoring a hawkish policy and will not be lowering their interest rates for some time, this interest rate advantage will continue to help the crown keep its strength.”
