The Czech koruna dropped today on worries that the government would not be able to implement measures for reducing the nation’s budget deficit because of the political opposition.

Prime Minister Petr Necas called for lawmakers to support his plan to raise taxes. He said that the there is no reason for the government to stay in power unless it would able to reduce the current deficit below the limit of 3 percent set by the European Union. Necas will be looking for political support after his proposal was rejected by the Senate.

USD/CZK advanced from 19.7745 to 19.9140 as of 16:16 GMT today.

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