Development of the euro exchange rate in relation to the ECB interest rates

The first part of this bachelor thesis describes the monetary policy of the ECB. This chapter is linked together with the second chapter, where the analysis of the development of the interest rates of the ECB is carried out. The third chapter tries to fulfil the main objective of this thesis - the empirical analysis of the relationship between the exchange rates of the euro against four different currencies, US dollar, British pound, Swiss franc and Czech crown, and the interest rate differential of the interest rates of relevant central banks. The last chapter shortly illustrates the impacts of the euro exchange rates development on companies in the euro area