UBS has revised its forecast for the Czech koruna, predicting an exchange rate of 25.1 to 25.3 against the euro through the first quarter of 2026, reflecting improved expectations due to delayed US tariffs. The koruna's recent appreciation is linked to eased tariff concerns, with potential further support from a hawkish Czech National Bank stance or a ceasefire in Ukraine. However, risks remain, including the possibility of a swift EU-US trade deal.