Raiffeisen Polbank: złoty should stabilize

A leading economist from Raiffeisen Polbank stated on Tuesday that recent fluctuations in the Polish złoty reflected the volatility of the euro in relation to the US dollar, and said that he did not expect the trend to continue beyond next week.  The euro [today] reached its lowest levels since 2003, after the announcement of changes in the forecast the [US] Federal Reserve, and this is another impulse to the weakening of the złoty, mainly in relation to the dollar; the recent changes in the euro and dollar translate into what is happening to the złoty against the dollar,” the analyst, Wojciech Stepien, told the Polish press. Raiffeisen trader Michał Poźniak also noted that pre-Christmas changes in the liquidity of the debt market can lead to greater currency fluctuation, and that stabilization was more likely after the Holiday period. "By the end of the week, the euro - zloty may [continue to] fluctuate, however, within the range of 4.40 to 4.44," Stepien added. However, upcoming political risks, the analysts speculated, such as elections in the Netherlands, France and Germany in 2017 may, indirectly, weaken the złoty.