Pound at its highest in two years, franc rate falls from a six-month high

Pound at its highest since November 2024, franc still expensive. What do the main pairs with the zloty look like?

In the currency market, there was more movement in the other two main pairs involving the zloty than in euro and dollar trading. EUR/PLN was still near 4,3711 zł in the morning, so the euro exchange rate was essentially unchanged. That means that when exchanging 1000 zł into a foreign currency today, the amount received will be very close to Monday’s level.

The calmer picture on EUR/PLN contrasted with a slight rebound in EUR/USD, which moved back above 1,12. For people exchanging money in Poland, the key point is that the lack of bigger moves in the euro keeps the zloty trading in a narrow range, without any clear shift in one direction.

USD/PLN was priced at 3,8924 zł and was less than half a grosz cheaper than a day earlier. In practice, the difference in a standard exchange is small, but it shows that the dollar weakened slightly against the zloty. The common currency was weighed down by a higher political and fiscal risk premium on France, linked to the riots and concerns over fiscal consolidation.

Pressure on the zloty was eased by lower oil prices, although Brent quotes remained close to 110 USD/b. PKO BP analysts said that without significant changes in oil prices, EUR/PLN should stabilize in the middle part of the 4,35-4,39 range, while USD/PLN should fluctuate between 3,88 and 3,91.

The standout move was in the British pound. For the first time, it reached 5,20 zł, a level not seen since November 2024. Since June, sterling has already risen by about 30 grosz, which for people buying pounds for a trip or to repay obligations means a clearly more expensive exchange than a few months ago. Meanwhile, CHF/PLN fell from its highest levels since March, although the franc remains very expensive. If EUR/CHF were to return close to the March lows below 0,90, the franc in Poland would cost more than 4,85 zł.

Sources

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