Polish Zloty Gains for Second Week
The rising interest rates difference between the U.S. and Poland stimulated the second week of Polish zloty’s growth against the U.S. dollar.
While the U.S. government and Federal Reserve remain concerned with the the rising recession risks, the Polish government and monetary authorities aim towards the inflation slowing. After it became known on Friday that the inflation in Poland reached the upper limit of the target level, investors became more confident in that the National Bank of Poland will go for another rate hike.
Meanwhile there is a great probability that Fed will not stop rate reducing at the current 3.00% level and will go down with them again soon. This fuels the market speculation on the widening rates difference, which is now at 3.25% between dollar and zloty.
On 30th of January, National Bank of Poland increased the interst rate from 6.00% to 6.25%; market analysts expect at least one more rate hike during the next three months.
USD/PLN Forex rate opened at 2.4600 on Monday this week and closed at 2.4197 on Friday trading session, showing more than 1.6% weekly drop.
February 3rd, 2008 at 9:15 pm
Most major currency that are not pegged to the USD are on the raise whcih mean that the USD is on the fall