The dollar is waking up after the Fed's decision. And the koruna feels it.

On September 16, the Fed raised rates to 3.75–4.00% and no longer expects any cuts until 2027. It's the first hike since 2023. The dollar index DXY (which shows the dollar's strength against a basket of major currencies) jumped from 98.8 at the start of September to around 101.4.

Why? Higher rates mean higher interest on dollar deposits and bonds. Big money goes where it gets paid more, and that requires dollars. Demand rises, price rises.

And the koruna? The koruna trades mainly against the euro, not the dollar. The USD/CZK rate is in practice a combination of two numbers: EUR/CZK and EUR/USD.

The koruna against the euro is holding around 24.20–24.40, so the movement comes mainly from the dollar against the euro. The result is that the dollar has climbed from 20.90 CZK at the start of September to 21.55 CZK, the highest in six months.

American stocks in your portfolio are growing in koruna even just due to the exchange rate. But buying new ones is currently more expensive because of the exchange rate.