On Tuesday, October 22, the dollar exchange rate was still at PLN 3.9862. The situation changed on Wednesday, when it was announced that for the first time since July the currency had exceeded the “psychological barrier” of PLN 4. We wrote more about this topic in the article: “Currency rates 23/10. A psychological boundary has broken. The dollar shot up. Gold discounted“The Polish currency is currently also losing ground against other rates.
The dollar has surged and the zloty is losing. All because of the elections in the United States
– Today's session is again taking place to the rhythm of the global strengthening of the dollar. EUR/USD is trying to break 1.078, and in our opinion this is a technical level at which there should be a moment of reflection for the markets – he commented for PAP Business Bank Millennium economist, Mateusz Sutowicz. The expert stated that the increase in the dollar exchange rate and its gain against the zloty is directly related to the increasing probability of Donald Trump winning the US presidential election.
– This is in contrast to expectations of quick and aggressive interest rate cuts by the Fed. The market is partially deleting its assumptions about next year. Additionally, tension and risk aversion are growing due to uncertainty about the results of not only the presidential elections, but also those for Congress. All this has a negative impact on the zloty, the economist added.
The Polish currency is not currently experiencing the best of times. Other rates are also up
The dollar is now gaining 0.04% against the zloty. The situation is similar in the case of the euro and pound sterling – the European currency is currently growing by 0.6%. and costs PLN 4.32, and the British pound costs PLN 5.20. Since closing, it has also strengthened against our currency by 0.04%.
– The zloty has grounds to remain relatively strong, but currently we are not paying much attention to the fundamentals – concluded Mateusz Sutowicz.