Euro exchange rate above PLN 4.70. Frank for a record PLN 4.51

2021-11-22 10:31

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2021-11-22 10:31

Euro exchange rate above PLN 4.70.  Frank for a record PLN 4.51
Euro exchange rate above PLN 4.70.  Frank for a record PLN 4.51
photo: Frederic Muller / / Shutterstock

Monday morning brought a continuation of the autumn weakening of the zloty. The Polish currency in relation to the euro is the weakest since March 2009 and has reached new records of weakness in relation to the Swiss franc.

It hasn’t been that bad with our currency in over 12 years. The euro exchange rate, after an increase by almost PLN 0.04 at 10:31 am, was at the level of PLN 4.7205, reaching the highest value since March 31, 2009! Only from the beginning of September the EUR / PLN exchange rate increased by over PLN 0.20. However, since the beginning of the year, the Polish currency has depreciated against the euro by 3.4%.

So so far, our last week’s fears that the euro exchange rate may approach the historical highs of March 2004 and February 2009 in the medium term have been confirmed. In both cases these are levels exceeding PLN 4.90. We are just over PLN 0.20 short of them, which the market is able to cover within a few weeks.

The arguments against the zloty are not only domestic factors in the form of inflation escaping the central bank, the dispute between the Polish government and the European Commission threatening to suspend the payment of funds under the European Reconstruction Plan, as well as deteriorating covid statistics and the situation on the border with Belarus. The Hungarian forint is also suffering, which would signal that the negative sentiment of investors affects not only the zloty.

Our currency is certainly not helped by the strength of the US dollar, which in tandem with the euro is trading at the strongest levels since July 2020. As a result, we already pay over PLN 4.18 for the dollar on the Polish market, which is over 3 groszy more than before the weekend and the most from last year’s May.

The Swiss franc is already a record price. On Monday morning, the Helvetic currency was valued at over PLN 4.51, which is 4.6 groszy more than before the weekend. This means that since June, the franc has already increased by 46 groszy, breaking not only the 5-year peak in March 2020, but even the all-time record set after the memorable “frankogeddon” on January 15, 2015. We wrote more about the CHF issue in the text entitled “Swiss Franc More and More Expensive. Key level close ”.

KK

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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