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Elections 2023. The zloty is gaining, the euro, the US dollar, the Swiss franc, the pound – quotations 17/10/23

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On Tuesday afternoon, we observe further strengthening of the zloty against the main currencies. The euro is the cheapest since the beginning of August this year. “The post-election golden autumn of the zloty. PLN is the fastest-growing currency in the world this week,” said Bartosz Sawicki, financial markets analyst at cinkciarz.pl, on social media.

On Tuesday, around 5 p.m., the price for one euro was nearly PLN 4.43. This is a level not seen since mid-August 2023. In recent days, the euro has become cheaper by approximately 11 groszy.

“The post-election golden autumn of the zloty. PLN is the fastest gaining currency in the world this week. EURPLN falls on Tuesday by another 0.5% and drops to 4.43. The euro exchange rate is only three cents away from this year’s summer lows” – Bartosz Sawicki, financial market analyst at cinkciarz.pl, pointed out in an entry on X (formerly Twitter).

We also see declines in the USD/PLN pair. You had to pay PLN 4.18 for a US dollar, which is the lowest since the beginning of September this year. In turn, the Swiss franc cost approximately PLN 4.65, the lowest since the end of August this year.

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The British pound cost approximately PLN 5.10. During the day, we also observed levels around 5.08 on the GBP/PLN pair, which was a level not seen since February 2021.

The zloty is strengthening after the parliamentary elections

– Euphoria and optimism are still visible on the currency market. The zloty is gaining in value again, a few cents in relation to the dollar and the euro. The EUR/PLN exchange rate is the lowest since the beginning of August, and in relation to the Polish dollar the Polish zloty is the strongest since the beginning of September. It can be said that the entire depreciation of the zloty from the beginning of September, caused by a large rate cut by the Monetary Policy Council, has already been erased, at least in relation to the euro and pound, and also to a large extent in relation to the dollar – said Łukasz Zembik, director of the analysis department, in an interview with the Polish Press Agency. DM TMS Brokers.

He added that investors were very optimistic about the prospect of a change of government in Poland and this trend should be maintained, but only in the short term.

– Investors assume that funds from the KPO (National Reconstruction Plan) will be released, but this will not happen in the next few weeks, it will be quite a long process. I think this process will last until a new government is formed, which may not take place until December or early next year, noted Zembik.

In his opinion, in the short term the strengthening of the zloty is running out, because the factor of the parliamentary elections will soon end and will be completely priced in by the market. – We have already returned to the levels before the September decision of the Monetary Policy Council to cut rates. I think that we will remain at these levels and global factors will have a stronger impact on the zloty, said Łukasz Zembik.

Main photo source: Shutterstock

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