Currency report: Upgrade boost for złoty

The dollar got only limited support from strong US data on Thursday that suggested the Federal Reserve would be in no rush to trim interest rates from 5.25 percent. US consumer prices jumped at its sharpest rate in eight months and climbed to 0.5 percent as prices for energy products shot up. The CPI core index rose 0.2 percent. The pace of US home construction also climbed 4.5 percent in December.

The Japanese yen fell to its lowest in almost four years against the dollar (USD/JPY at  ¥121.60) and neared record lows versus the euro, after the Bank of Japan kept interest rates on hold at 0.25 percent - the lowest level in the industrialized world. The decision added further gusto to investors using the yen as a funding currency to purchase units with a higher return.

The złoty benefited from a rating upgrade by Fitch Ratings on Thursday afternoon. Fitch raised Poland to 'A-' from 'BBB+', citing strong macroeconomic performance. On Friday afternoon the EUR/PLN traded at EUR 3.85 and the USD/PLN at zł.2.975.

Marek Węgrzanowski

X-Trade Brokers Dom Maklerski SA