The continued weakness of the dollar supports the Polish currency. The zloty is closer to "pre-pandemic" levels than those from two weeks ago. The USD/PLN pair is just above the 4.00 boundary.
The dollar stabilises the market
Thursday's morning quotations did not bring any significant changes - positive sentiments still prevail in connection with the "opening" of economies. The macroeconomic calendar, which is quite empty in the case of significant events, is also conducive to maintaining good sentiment. For the market, which may slowly start to take notice of the incoming data that include a period of lesser restrictions, the next Friday may be important, when we will learn the report on the US labour market for May.
These limited fluctuations, especially in currency quotations, were also observed today. The sales pressure on the dollar led the EUR/USD exchange rate to the limit of 1.10 (the upper range of quotations from the end of March). Maintaining this level supports the stabilisation of, among others, emerging country currencies (EM), and since the dollar is weaker today than, e.g. in mid-May, this is stabilisation with higher values for most EM currencies.
The zloty is clearly stronger
The zloty also profits from these circumstances. The USD/PLN exchange rate fluctuates close to 4.00 PLN, and the last time it was below this value was in mid-March. The EUR/PLN exchange rate, on the other hand, is in the range of approx. 4.41-4.43 and is also closer to pre-pandemic levels (approx. 4.30) than two weeks ago (approx. 4.55-4.57).
The currently increased appetite for risk and the globally stronger euro (due to, among other things, the announced stimulus package for the EU) weaken the Swiss franc. The EUR/CHF quotations are just below the 1.07 boundary, while not more than two weeks ago they were at 1.05, the lowest level since 2015.
The Swiss currency was gradually but clearly appreciating before the outbreak of the pandemic. Current levels made it possible to return to the situation of early March, even though today the market is dominated by strong optimism. In turn, the CHF/PLN exchange rate fell to around 4.1340 PLN today and is the lowest level since mid-March. A reduction of optimism in the broader market may increase demand for the franc again.