Dollar near 4 złoty. Pound at its highest against the zloty in two years

Dollar close to 4 zł, euro calmer, pound and franc near this year’s highs

With 1000 zł, you can buy about 254 dollars today, if you take the morning USD/PLN rate at 3,9319 zł. That means the U.S. currency is clearly expensive for buyers, and the 4 zł threshold remains very close. When exchanging 5000 zł, the difference versus the 4 zł level is already noticeable, although the rate itself has still not broken through that barrier.

Over the past few weeks, the dollar has risen by more than 20 groszy against the złoty, as the exchange rate has been climbing since the end of August. The market is being supported by a strong dollar globally, as well as concerns about the state of France’s public finances and expectations of further interest-rate hikes in the United States. In this environment, the euro is weakening, and the EUR/USD pair has fallen below 1,12 USD, its lowest level this year.

The euro market looks calmer. On Tuesday morning, EUR/PLN stood at 4,3852 zł, almost unchanged from Monday’s close. The nearest resistance is in the 4,39-4,40 zł area, so only a move above 4,41 zł would signal a shift to levels not seen since November 2023.

The złoty was also weighed down by Fitch’s negative revision to its outlook for Poland’s public finances. The agency now expects this year’s fiscal deficit to reach 7,3% PKB, up from an earlier estimate of 6,9%. For next year, the forecast is 7,1%, compared with 6,7% in the previous reading. For 2028, Fitch sees the deficit at 6,5% PKB, and general government debt at 73,4% PKB.

The British pound also remains expensive, trading at 5,1867 zł in the morning after Tuesday’s high of 5,1954 zł. The Swiss franc is also holding near this year’s highs, quoted at 4,71 zł. For people exchanging money, that means the cost of buying both currencies remains high, and in the short term the market is still challenging for the złoty.

Sources

1. Current exchange rates: National Bank of Poland (average exchange rate table)