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The euro is at its highest in three weeks. EUR/PLN rises above 4.25 zł
The zloty comes under pressure as tensions rise around the world
The zloty is edging lower as investors are taking a more cautious view of emerging markets. Sentiment worsened after reports from the Middle East, and some capital is flowing back into safer assets. For people buying foreign currencies, that means the euro exchange rate and dollar exchange rate remain elevated.
On Thursday morning, EUR/PLN is fluctuating around 4.2540 zł, and overnight it was even above 4.2550 zł. That is the highest level in nearly three weeks. The euro is therefore costing more than 4.25 zł today and is clearly more expensive than it was at the start of the week.
At the same time, USD/PLN is moving higher. The dollar is priced at 3.6869 zł, and the market is factoring in a possible move toward 3.70 zł. Such levels matter for people settling invoices in dollars, working remotely for foreign companies, or planning a trip outside the euro area.
The broader currency market is also in the background. EUR/USD stands at 1.1540, showing that the dollar remains strong against the euro as well. At the same time, investors are watching the U.S.-Iran situation and waiting for the ECB (European Central Bank) decision.
The market is pricing in an interest rate hike of 25 basis points. Yesterday’s CPI (Consumer Price Index) reading from the U.S. did not change expectations for the Fed (U.S. Federal Reserve), and higher rates in major economies usually support stronger currencies and keep pressure on the zloty. That is also visible in CHF/PLN, which is priced at 4.6095 zł, and GBP/PLN, which is holding around 4.93 zł.
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