Złoty reaches highest level in months

The Polish złoty rose in trading against the euro last week, and finished the week below €4.35, it’s best showing since late October of 2016. According to analysts, the rise could be attributed to the recent weakening of the US dollar and the fact that international credit ratings agencies, such as Fitch, did not change their debt ratings for Poland. Claudiu Cazacu, an analyst at FX Street Traders, added that the recent positive sentiment directed at the złoty was a result of steady rates of employment in Poland, but that a crucial factor in determining the currency’s strength would be the release by the government of details of the so-called “spread act,” its solution to deal with the Swiss franc-denominated mortgages. “It seems the proposed solution is not going to hurt the banking sector or the local currency,” Cazacu wrote on Saturday. On Sunday afternoon, the złoty was trading at €4.33 and $4.05.