Currency report: The złoty's jumpy week

On Friday, Poland's financial markets recovered some of these losses on revived hopes that the pro-business Civic Platform (PO) will lead the next government when the surveys showed that PO regained some support to take first place.

Analysts speculated that in the case of a PiS victory the Polish currency could weaken to zł4-4.05 against the euro. At the start of the week, on Monday and Tuesday, the market was not nearly so nervous. The złoty hit its highest level against the euro since June 2002, with E1 costing just zł.3.77.

Economic data for Poland published during the week did not influence the markets and they were given no clues about the monetary council decision that is due on September 27-28. Industrial output in August rose about 4.6 percent, retail sales about 7.6 percent and PPI declined by about 0.1 percent.

Marek Węgrzanowski

WGI Dom Maklerski