Lowest Spreads and Flexible Terms.
Euro rate at its lowest since mid-October. EUR/PLN loses ground against the złoty
The złoty starts the week stronger. Euro cheapest since the end of October
The euro exchange rate fell in the morning to 4,3811 zł, and after 10.00 the EUR/PLN pair was at 4,3815. That means that with 1000 zł you can buy about 228 euros today. For someone exchanging 5000 zł, the difference versus a higher rate is noticeable, although still small in terms of a single transaction.
On a daily basis, the common currency is 0,11 proc. cheaper than Monday’s close. That is the lowest level since 23 October. For a tourist, someone repaying expenses in euros, or freelancers settling accounts in this currency, it means a slightly more favorable złoty exchange rate than a day earlier.
The move is also visible in USD/PLN. The dollar is losing 0,3 proc., while the EUR/USD pair rose in the morning to 1,1248, or 0,24 proc. In practice, a weaker dollar usually supports the złoty, as it improves market sentiment and eases pressure on emerging-market currencies.
The improvement in sentiment is being driven by reports of peace talks between the US and Iran. The market is hoping for a de-escalation of tensions, which supports risk appetite and weakens the US currency. Also in the background is a decline in oil prices, which is further improving investor sentiment.
On Tuesday, the market’s attention will shift to US CPI (Consumer Price Index) inflation data, which could influence expectations for the Fed’s December decision. PKO BP economists also point to talks between the US, Ukraine and Russia in the UAE. If there is no escalation in the Middle East, the złoty may continue to benefit from a better market backdrop.
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