The Czech koruna lost today and closed at 28,50 against the euro. The fall was common for all currencies in our region. Negative factors were mainly Slovak and Hungarian politics and also jitteriness before Fed. Czech central bank had a monetary meeting today. Holding the rates unchanged and the governor´s comment were in line with expectations.
The American dollar trades slightly stronger against the euro at 1,2530 and also closed firmer against the Czech currency at 22,73 CZK/USD. The market is awaiting Fed decision about rates (a 25 bps rate hike is expected) and especially the Bernanke´s speech. The key point is an indication of future path of US interest rates.