The dollar is strengthening against the złoty, and the USD/PLN rate is still trading in a narrow range

The dollar is stronger, but the zloty remains calm against the euro

In the morning, USD/PLN was quoted at 3,6489 zł, or 1,2 grosz higher than on Friday morning. This reflects a broader global strengthening of the dollar, supported by rising expectations of a Fed rate hike.

At the same time, EUR/PLN stayed near 4,2469 zł. For people exchanging money in Poland, this means the dollar has edged higher against the zloty, while the euro rate still shows little change.

The EUR/USD pair, or the euro-to-dollar exchange rate, fell below 1,17 USD and dropped to its lowest level since last month. That matters because a stronger dollar usually pushes up the U.S. currency’s value against the zloty as well.

According to analysts at PKO BP, the global appreciation of the dollar is weighing on the zloty and other emerging-market currencies. In their view, EUR/PLN may stay in the 4,23-4,26 range in the near term, while USD/PLN has room to move toward 3,66-3,68.

The final April CPI data, or consumer price inflation, which rose to 3,2%, also had little impact on valuations. CHF/PLN was equally stable in the morning at 4,6476 zł, while GBP/PLN stood at 4,8769 zł.

Sources

1. Current exchange rates: Narodowy Bank Polski (average exchange rates table)