16:40 2 June 2025
Złoty drops against euro after election results
The Polish złoty (EUR/PLN) weakened and the WIG20 index dropped sharply on Monday following the surprise presidential election victory of eurosceptic Karol Nawrocki. The EUR/PLN rate rose from 4.25 on Friday to 4.275 on Monday morning, before slightly easing. Analysts see Nawrocki’s win as a blow to pro-EU reform plans and a risk to EU funding, potentially heightening political instability and weakening investor confidence. Major bank stocks fell significantly, with PKO BP down 4.3%.
Experts fear delayed reforms, looser fiscal policy, and increased risk premiums. Although some indices recovered slightly later in the session, markets remain cautious, especially amid geopolitical tensions and concerns over the future of Poland's government coalition.
(pb.pl)
