Currency report: Spotlight on central banks
The main event which moved the złoty, debt markets and the dollar was the Monetary Policy Council's (RPP) meeting and the FOMC meeting (US Federal Open Market Committee).
The złoty's yield gained advantage over the dollar after Poland's central bank cut its interest rates by 50 basis points on Wednesday and signaled further easing was in store. On the other side of the Atlantic, the US Federal Reserve raised interest rates too, for the ninth time running, eating into emerging market yield premiums on US assets. The greenback has held firm against all main currencies.
Analysts say that the złoty's buoyancy despite falling rates and political risk around September 25's general elections increases pressure on the bank to ease rates further to counter the dampening impact of the strong currency on growth.
Marcin Golik
WGI Dom Maklerski
The złoty's yield gained advantage over the dollar after Poland's central bank cut its interest rates by 50 basis points on Wednesday and signaled further easing was in store. On the other side of the Atlantic, the US Federal Reserve raised interest rates too, for the ninth time running, eating into emerging market yield premiums on US assets. The greenback has held firm against all main currencies.
Analysts say that the złoty's buoyancy despite falling rates and political risk around September 25's general elections increases pressure on the bank to ease rates further to counter the dampening impact of the strong currency on growth.
Marcin Golik
WGI Dom Maklerski
