The euro rate is near its lowest levels since the start of the Persian Gulf conflict

The złoty reacts to news from the Middle East

News of a possible agreement between the USA and Iran boosted the euro and briefly pushed EUR/PLN to around 4,2250 zł. That is close to the lower end of the consolidation range, or fluctuations between 4,2250-4,3070 zł, which has been in place since the beginning of March.

In practice, this means the złoty market is watching not only data from Europe and Poland, but also the geopolitical situation very closely. The greater the chance of easing tensions around the Strait of Hormuz, the smaller the risk premium in the euro and złoty quotes.

On Friday morning, the euro rate edged slightly higher and stood at 4,2332 zł, 0,4 grosz more than before. Analysts note that if tensions around Iran do indeed ease, EUR/PLN could move closer to the 4,22-4,1950 zł zone.

In that scenario, a sharper decline in USD/PLN would also be possible, which according to PKO BP analysts could move closer to at least 3,56 zł. For now, however, the dollar remains relatively strong, and there is still no breakthrough on the world’s most important pair, EUR/USD.

One dollar was trading at 3,6378 zł this morning, 0,8 grosz more than on Thursday evening. The Swiss franc cost 4,6382 zł, while the British pound was priced at 4,8826 zł. For people exchanging money in Poland, this is a sign that changes are still moderate for now, although sensitive to every new message from the region.

Sources

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