A positive return

After a very nervous end to the previous week, yesterday saw strong demand for zloty, which grew in value by 0.6%. The EUR/PLN rate fell to 4.7700, while the US$/PLN rate lowered to 3.9500. As expected, Marek Belka has been sworn in as the new prime minister, which is good news for the zloty. However, Belka's cabinet does not have sufficient support in parliament, which will make a decision on the matter in the middle of the month. Consequently, we expect to see negative pressures on the zloty before this event. We expect the zloty to weaken should Belka fail to gain support for his cabinet in the vote.
www.tms.pl