Currency report: High volatility

On the first two days, a strong dollar lifted the USD/PLN to zł.3.30, which was the highest level in a month. At the same time the złoty was stable against the euro. During the next three days the dollar was losing against the złoty as investors began to sell the US currency on the international market. At the same time the złoty was dropping against the euro after Law and Justice (PiS) announced new reforms that will cost zł.12 billion, and rising as the Civic Platform (PO) candidate began gaining in the pre-election surveys. The Polish market was also hit by forint depreciation after the Hungarian government decided to widen its deficit and postpone euro adoption.

The EUR/USD dropped to its lowest level since July on Monday, breaking an important support level at $1.20, but was unable to record a new low for this year. Weak economic data from the US on Wednesday forced investors to sell dollars, although Fed representatives confirmed further rate hikes.

Maciej Chojnacki

WGI Dom Maklerski