The dollar is stronger against the euro and the złoty. EUR/PLN is stable at 4,35 zł.

The dollar is stronger, but the zloty is holding its ground

USD/PLN cost 3,8079 zł in the morning, which was one grosz more than a day earlier. That is still a level at which 1000 zł buys about 262 USD. For people exchanging money, it means the U.S. currency is a little more expensive today, but the move remains small.

What matters more for the market is that the dollar is strengthening against the euro, and yet the zloty remains relatively strong. The EUR/PLN rate is holding close to 4,35 zł. In the morning, the euro cost 4,3510 zł, so 5000 zł would buy about 1149 euro. At this level, even a small move of a few grosz matters for people paying for travel, rent or a transfer in foreign currency.

In practice, the euro rate is now sitting on an important support line. If it were to be broken decisively, the current rise in EUR/PLN quotes could lose momentum. For now, however, the market has clearly paused near this level, without a stronger move in either direction.

Behind the scenes, there are also factors supporting the dollar. Over the past 24 hours, the U.S. currency gained on the back of strong comments from Fed officials, and it also reached a seven-week high against a basket of major currencies. On the other hand, earlier declines in oil prices had helped the zloty, although that impulse has clearly faded. PKO BP analysts also pointed to weaker retail sales data for August.

The Swiss franc is also little changed. In the morning, the CHF/PLN rate stood at 4,6303 zł. That is above the 4,5646 zł the franc reached on 11 September, when it set an 8-month low. For people repaying loans or sending money to Switzerland, it means the franc is once again noticeably more expensive than it was at the start of the month.

Sources

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