Zloty prices exposed to major shocks

At present, risky currencies seem to be exposed to additional losses, according to Ebury experts. All the signs suggest that the situation is likely to worsen before it improves and an immediate large correction in the markets seems highly unlikely.

"The Polish zloty belongs to the group of currencies considered risky, it is also one of the currencies that are under pressure due to the proximity of the conflict. The combination of these factors translated into a significant weakening of the zloty, especially to currencies considered safe (e.g. USD, CHF) and makes the zloty one of the most volatile currencies in the context of the current situation," the release reads.

An additional problem for the Polish zloty in the context of the pressure on the exchange rate may be high liquidity, which makes selling it off may be a preferred option for investors to reduce risk exposure in the region.

(WBJ)