Currency report: End of the holiday

Last week was in stark contrast to any of the proceeding two months. Although it started as slowly as any other holiday week, the final two days were very volatile and resulted in several unexpected moves.

The złoty, which was supposed to weaken after political and fiscal crises last week, appreciated against all major currencies. EUR/PLN and USD/PLN were going south because of dovish comment from the RPP that caused a rally on the Polish bonds market. Foreign investors were happy to fear that interest rates in Poland can drop in the coming moths. They were selling dollars and euro to buy Polish bonds and shares. The public offer of PGNiG, which started last week, also helped the złoty. On Friday EUR/zł. was at zł.3.97 and USD/PLN at zł.3.17 against zł.4.06 and zł.3.29 the previous week, respectively.

Maciej Chojnacki

WGI Dom Maklerski