Wednesday is another day when we observe the zloty weakening. All major currencies are becoming more expensive: the euro, the US dollar, the British pound and the Swiss franc. According to analysts, the Polish currency is influenced, among others, by a strong dollar and the migration crisis on the Polish-Belarusian border.
On Wednesday, the exchange rate of the Swiss franc in the morning reached the level of PLN 4.42, the euro rate exceeded PLN 4.66, and the dollar soared during the day to the level of PLN 4.12.
Currency Quotes – November 17, 2021
“Sentiment towards the Polish currency has not improved significantly since yesterday. EUR / PLN reached the peak at 4.6670. I believe that catching up with the March highs (4.6750) is only a matter of time. Strong dollar, crisis on the Polish-Belarusian border and the topic of payments from the Reconstruction Fund are strong factors limiting the appreciation of the zloty. They effectively prevent even the very probable interest rate hike by the MPC in December not be able to strengthen the zloty, ”believes Łukasz Zembik from DM TMS Brokers.
In turn, according to Cinkciarz.pl analyst Bartosz Sawicki, “the sources of the zloty’s weakness should be sought in global markets: the vision of a less lenient monetary policy in the US sucks capital from emerging markets”. “The dollar rally highlights and intensifies imbalances in the emerging market world, for example in the balance of payments. It also threatens with an additional acceleration of inflation while dampening economic growth” – he wrote in the commentary.
He added that “local factors are responsible for the scale of the weakening: compared to other basket representatives, the zloty is extremely sensitive and unstable”. “The basic problem is the monetary policy, and more precisely the uncertainty about the scale of the tightening in the coming months. The conflict between the Polish government and the European Union, the accumulating geopolitical risks related to the migration crisis at the Polish-Belarusian border, as well as the immediate evaporation of a substantial surplus in the account, are also definitely not helping. The advantage of the zloty is its attractive, medium-term valuation, but it is definitely not enough for a demand to emerge in unfavorable circumstances, he said.
Zloty – exchange rate November 17, 2021
On Wednesday morning you had to pay PLN 4.66 for the euro.
The US dollar cost slightly over PLN 4.12.
The CHF / PLN pair exceeded the level of 4.42.
You had to pay PLN 5.53 for the British pound.
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