The zloty was shaken but not stirred. The dollar rate slowed down to 3.60 PLN

published 2025-07-04 10:01

A rather unexpected cut in NBP interest rates only shook the zloty quotes for a while. The euro exchange rate remained in a sideways trend, and the dollar's quotations stopped at the line of 3.60 PLN. The pound sterling was quoted close to the lowest levels this year.

photo: Labutin.Art // Shutterstock

July the cut in interest rates at the Polish National Bank surprised almost everyone analysts, but not was such a surprise to market participants . Greater impact on The zloty exchange rate was higher on Thursday conference of President Glapiński during which the złoty managed to make up for Wednesday's losses.

As a result, on Friday at 9:57 the euro exchange rate was 4.2467 PLN and was 0.9 groszy higher than the previous day. It is worth noting that the euro quotes started to grow after publication July NBP inflation projection. It shows that assuming unchanged interest rates CPI inflation will return to 2.5 percent target only at the beginning of 2027. This raises the question of why the Monetary Policy Council lowers interest rates? Could it be that the Council members do not believe in the implementation NBP projection?

- The zloty may strengthen slightly against the euro, although in the absence of new significant market impulses, the zone has been broken support stretching between 4.23-4.2250 on EUR/PLN may turn out to be at the end this week is too difficult a task - PKO BP wrote in a report.

Friday is a holiday in the United States and for this reason For this reason, we can expect lower investor activity and lower volatility in financial markets. Especially since Friday's calendar macroeconomics is empty.

After the dynamic growth in the second quarter, it is taking a rest. EUR/USD exchange rate. On Friday morning, the market valued one euro at 1.1750 dollars – or below 4-year high at 1.1893 USD. As a result, the dollar exchange rate to the Polish zloty stopped at the level of PLN 3.60 after This week it set a 7-year low (PLN 3.5852).

Globally, the Swiss franc remains very strong. In the morning, the Helvetian currency was valued at PLN 4.5440 on the Polish market, which is more than a penny higher than the day before. However, these are still movements in the vicinity the middle range of this year's sideways trend, which is in the range 4.50-4.60 PLN.

The British pound was trading close to this year's lows, which the market valued at 4.9284 PLN. This is a result of the weakness of sterling against and so very weak US dollar. The poor sentiment towards the pound is due to disappointment with the rule of the Labour Party, which has just withdrawn its plans to cut excessive social spending , which means widening the already too large budget hole.

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