The dollar is rising amid tensions in Iran, while the euro is stable against the złoty

Dollar slightly stronger, euro and franc mostly unchanged

On the złoty market today, the main theme is stability. EUR/PLN has been moving in a narrow range for several days, while the bigger swings are mainly in USD/PLN. It is the dollar that has gained the most over the past few hours, supported by better data from the U.S. and weaker PMI readings from the euro area, especially France.

On Friday morning, EUR/USD briefly slipped below 1,16 USD and fell to its lowest level since 8 April. On the domestic market, that briefly translated into as much as 3,67 zł for the dollar, although the złoty later recovered part of its losses. In the morning, USD/PLN was quoted at 3,6581 zł.

In a comment cited by PKO BP, analysts noted that FX market volatility was elevated on Thursday. Price action was driven by macro data from major economies and incoming reports on the situation in the Middle East.

The picture for the euro is calmer. On Friday morning, the euro rate stood at 4,2461 zł, almost unchanged from the previous day. For the past two weeks, EUR/PLN has been trading in the 4,24-4,26 zł range, and since the beginning of March the market has remained in a broader consolidation between 4,2250 and 4,3070 zł.

There is also a bit more action in CHF/PLN. On Friday morning, the Swiss franc rose to 4,6521 zł, marking the first attempt in three weeks to break out to the upside from the local trading range. The British pound was priced at 4,9115 zł, and its quotations have remained sideways for weeks, despite sterling weakness against the dollar.

Sources

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