Dollar rises above PLN 5 mark

The dollar has strengthened above PLN 5 for the first time ever. The greenback is supported by strong data on the US economy, surprisingly high sales of single-family houses, and growing consumer confidence. The energy crisis and a faster deterioration in the economic outlook outside of the US have also been crucial drivers of dollar strength.

Złoty has been falling against the dollar for several months. Since the beginning of the year, the currency has lost 24%, and the trend continues. “The technical situation looks terrible, the dollar has never been so expensive. A permanent break of the PLN 5 level may direct the market's attention towards the level of 5.0550, or even 5.1150,” XTB analysts said.