As global risk aversion increased due to stock markets declines, emerging markets’ currencies lost value. Such corrective movement of the Złoty, after weeks of appreciation, was expected. Also expected, was the Monetary Policy Council’s decision to keep interest rates unchanged in Poland at 3.5%. The next step will probably be an interest rate hike, the earliest in the second quarter of 2010. Surprisingly though, acted the Norwegian central bank, which increased interest rates by 25 basis points, being the first European bank to do so. The economic crisis might be over but after months of strong increases, the market might need a deeper corrective movement. Was this past week the beginning? We will know the answer after next week’ macro publications, including the U.S nonfarm payrolls report. Throughout the course of the week, the EUR/PLN climbed from zł.4.1720 all the way to zł.4.2450 (zł.4.2790 at mid-week) while the USD/PLN increased from zł.2.7730 to zł.2.8740 (zł.2.9090 at mid-week).
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