No matter the reason, we currently have the cheapest dollars in almost 3 years. The truth, as is often the case, lies somewhere in between, because it is both the merit of the dollar and the Polish złoty. China is not moving interest rates, while gold is hitting records again.
Dollar Weakest in a Long Time
The weak streak of the American currency continues. As a result, the dollar’s exchange rate against the euro is the weakest since January. Compared to the Polish zloty, the American currency is the cheapest since September 2021, almost 3 years. The reason for this unexpected strength of the Polish currency against the dollar is largely due to the weakness of the so-called greenback. However, if we compare the American currency against other currencies in our region, we see that compared to the Czech koruna or Hungarian forint, it is not that weak. The Polish złoty clearly benefits from maintaining disproportionately high interest rates compared to other countries.
China Does Not Change Interest Rates
Beijing did not join the dangerous game of high inflation for the economy. This country did not shockingly flood the economy with money in an uncontrolled manner at the beginning of the pandemic. As a result, it has not been fighting price increases for many quarters. There were also no drastic increases and now there has been no decline in interest rates. Interest rates are indeed in a declining trend, but for about 6 years. This country is gradually lowering the main interest rate with the development of the economy. At today’s meeting, as expected, there were no changes in interest rates. The five-year loan rate remained at the unchanged level of 3.85%, while the one-year rate remains at 3.35%.
Gold Breaks Another Record
Just yesterday we were writing about Friday’s gold price increases and setting new records. However, it quickly turned out that Monday did not bring us such a typical correction after strong increases. Today, however, another increase has been ongoing since morning. As a result, we have new all-time records. What is the reason? Yesterday’s calming down was due to Israel’s agreement to a ceasefire. Hamas also agreed. Supposedly good? The problem is that both sides agreed on different terms. As absurd as it sounds, despite both sides agreeing to some ceasefire, it changes little. As a result, investors, fearing escalation, are buying up gold, and prices are rising.
Today in the macroeconomic data calendar it is worth paying attention to:
13:00 – Turkey – decision on interest rates,
14:30 – Canada – consumer inflation.
Maciej Przygórzewski – Main Analyst at InternetowyKantor.pl and Walutomat.pl.
Source: https://ceo.com.pl/sila-zlotego-czy-slabosc-dolara-92229
