Zloty weakest since spring, with lockdown in Europe in background

The day on the domestic currency market started with a strong sell-off of the zloty. The euro costs PLN 4.60, the Swiss franc is approaching PLN 4.30, and the pound is attacking PLN 5.10. The zloty is the weakest since spring.

According to Marcin Kiepas, an analyst at Tickmill, the shadow on the zloty quotations is primarily the rapidly accelerating coronavirus pandemic and the related restrictions, both in Poland and in individual European countries. In the last 24 hours alone, the markets learned of a possible "soft lockdown" in Germany, which will take effect on November 4, and new bans in France.

The epidemic situation is still very bad in Poland. Only yesterday there was a record number of 16,300  new confirmed cases of coronavirus infection. And this is probably not the last record (the newest data from October 28 covers 18,820 cases). Therefore, it is likely that the lockdown in the country, which has been gradually introduced for two weeks, will be aggravated in the coming weekend. Meanwhile, analysts are already adjusting their GDP forecasts downwards in 2020. A full lockdown would weigh on the Polish economy even more. And not only this year, but also at the beginning of 2021.

(ISBnews)