Poland's zloty strongest to euro in five years at nearly 4.24
Poland’s zloty strengthened on Wednesday to a five-year high against the euro. According to experts, this is caused by the European currency’s gains against the dollar as well as expectations for local interest rates to stay higher for longer, indicated by the latest conference of Poland's central bank NBP governor Adam Glapinski and his stance, perceived as hawkish.
The zloty has room to strengthen further in the second half of 2025 due to the prospects of a weaker dollar, Poland's central bank NBP's hawkish stance, positive C/A balance and foreign investment inflows, analysts at the American bank BofA Securities assessed.
BofA expects the EUR/PLN exchange rate to fall to 4.25 in the second quarter of 2025 from 4.30 in the first quarter and further strengthen the Polish zloty to euro 4.20 in the third and four quarters of 2025.
The market, however, expects a weaker zloty, with the EUR/PLN exchange rate expected to rise to 4.31 in the second quarter from 4.27 in the first quarter, and then to 4.35 in the third quarter and 4.39 in the last quarter of 2025, according to contracts for the Polish currency.
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