Euro exchange rate above PLN 4.70

2021-11-23 10:52

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2021-11-23 10:52

Prime Minister Morawiecki did not help the zloty.  Euro exchange rate above PLN 4.70
Prime Minister Morawiecki did not help the zloty.  Euro exchange rate above PLN 4.70
photo: Anikin Denis / / Shutterstock

Prime Minister Morawiecki’s verbal charge failed. Despite speculation about a possible currency intervention by the NBP, the euro exchange rate has remained close to the highest levels in over 12 years.

– We will do everything in communication and in our real actions to make the zloty a bit stronger – Prime Minister Mateusz Morawiecki said on Monday. The market perceived it as a signal warning against a potential currency intervention of the National Bank of Poland. And it was enough for the euro exchange rate to drop from over PLN 4.72 to PLN 4.68.

Unfortunately, soon afterwards the zloty started to weaken again. We ended Monday’s trading on the zloty market at the EUR exchange rate of PLN 4.70. We start Tuesday morning with the euro exchange rate at PLN 4.7151, which is nearly a penny higher than the day before. But this is still very close to the highest levels recorded the day before since March 2009.

It is worth noting that the recently published data from the Polish economy do not have any positive impact on the zloty. Neither the solid reading of industrial production nor the higher than expected retail sales in October contributed to the strengthening of the Polish currency. Now investors’ eyes will be on the National Bank of Poland. The next meeting of the Monetary Policy Council is scheduled for December 8. Only a hike by at least 50-75 bp could help the zloty. and a clear signal that the Polish central bank will be serious about bringing inflation down to the 2.5% target.

The situation, unfavorable for the zloty, also persists in the global financial market. The dollar continues to appreciate against the euro, which is detrimental to the entire basket of emerging market currencies, including Poland. As a result, you had to pay over PLN 4.19 for the American currency on Tuesday morning.

The Swiss franc was still traded close to the historical highs set on Monday, valued at PLN 4.4946. The British pound cost over PLN 5.60. Sterling was last so expensive the day before the Brexit referendum in June 2016.

KK

Source:
Themes

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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