Prague  - The quickly firming Czech koruna broke a new set of records Monday, appreciating by nearly 19 per cent against the euro and 30 per cent against the dollar in the past year.

The koruna, which first broke the psychological threshold of 23 koruny per euro on Friday, was trading for 22.92 koruny per euro and 14.44 koruny per dollar on Monday, according to Next Finance consultancy.

Analysts say the fast-paced appreciation is driven by speculation. "It is a bubble. The koruna is unreasonably strong," said Next Finance chief economist Vladimir Pikora.

Pikora ascribed the latest records to Prime Minister Mirek Topolanek who was cited as saying Monday that the strong currency poses no danger to the economy and requires no intervention by the central bank.

"As (Topolanek) spoke against intervention he encouraged investors and opened more space to firming," Pikora said.

Unlike Topolanek, exporters and analysts expect the economy to slow down and the unemployment rate to rise as soon as this autumn due to the firming currency.

The strengthening koruna is also deepening a rift over a euro adoption timetable between the Topolanek's centre-right government and exporters who form the backbone of the Czech economy.

Exporters are seeing profits shrink due to the strong currency and are calling for a speedy adoption of the euro, while the premier opposes the move.

"Those two problems are not linked, so no," the Hospodarske Noviny daily quoted Topolanek as saying.

While neighbouring Slovakia is joining the eurozone on January 1, the Czech Republic has abandoned the country's 2010 target for making the switch and has so far refrained from setting a new one.

Top central banker Zdenek Tuma has suggested that Czechs adopt the euro as late as 2019 in order to keep the benefits of an independent monetary policy as long as possible. (dpa)