Currency report: Złoty steps up as euro dips

The EUR/PLN fell from zł.3.99 on Monday to zł.3.94 on Friday in the afternoon. The USD/PLN dipped from zł.3.11 to zł.3.14.

The markets were also helped by the news that former Finance Minister Zyta Gilowska will probably return to government. Samoobrona and LPR, the junior coalition partners of the ruling Law and Justice, have signaled they may quit the government next year and trigger early elections in the spring as campaigning hots up ahead of local elections on November 12. Investors expect that the smaller parties are only trying this to strengthen their position before local elections, and held on to their Polish assets.

Macroeconomic data from the economy renewed speculation regarding rate hikes in Poland. The CPI rose to 1.6 percent in August (against a forecast of 1.4 percent) and corporate wages showed a 5.3 percent year-on-year rise. According to Miroslaw Pietrewicz from the Monetary Policy Council  the central bank should wait at least several months with a decision on rates.

Marek Węgrzanowski

X-Trade Brokers Dom Maklerski SA