Currency report: EUR/PLN hits six-month low

This coalition should guarantee the market and fiscal reforms that are needed for euro adoption. The złoty also remained strong because of market reasons: The PGNiG offer, as well as strong demand for Polish bonds was the main driving force. On Wednesday, the EUR/PLN dropped to as low as zł.3.9010 which was the lowest level since March 10. In the coming week the EUR/PLN can test the lowest levels this year at zł.3.87. If broken, we can expect further złoty strengthening.

On the international market, the dollar gained ground after last week's sell off. US refineries, closed in the wake of hurricane Katrina, started production quicker than expected - helping oil prices. Although the oil price dropped by $3 (zł.9) since the previous week's high, investors were reluctant to buy the greenback.

Maciej Chojnacki
WGI Dom Maklerski