Currency report: Dollar comes cheap

Poland's złoty inched higher last week, cheered by positive sentiment on emerging markets, the dollar's weakness and strong Polish economic data. The złoty has appreciated nearly eight percent since June, boosted by solid economic fundamentals and a fast-growing economy. GUS said on Thursday that the economy beat forecasts of 5.5 percent to grow 5.8 percent in Q3.

Polish markets showed no reaction to a decision by the central bank to leave rates as expected on hold at four percent. On Friday the EUR/PLN was trading at zł.3.81 and the USD/PLN at zł.2.86, its lowest level since 1997. Deputy Minister Piotr Soroczyński predicted that the currency would strengthen to around zł.3.70 against the euro by February.

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