10:47 2006/12/04
Currency report: Dollar comes cheap
The event of the week was the weakness of the American currency. The EUR/USD cross rose above $1.33 (a 20-month high) as the ISM index at 49.5 in November suggested a growing probability of a recession in the US. Poland's z?oty inched higher last week, cheered by positive sentiment on emerging markets, the dollar's weakness and strong Polish economic data. The z?oty has appreciated nearly eight percent since June, boosted by solid economic fundamentals and a fast-growing economy. GUS said on Thursday that the economy beat forecasts of 5.5 percent to grow 5.8 percent in Q3. Polish markets showed no reaction to a decision by the central bank to leave rates as expected on hold at four percent. On Friday the EUR/PLN was trading at z?.3.81 and the USD/PLN at z?.2.86, its lowest level since 1997. Deputy Minister Piotr Soroczy?ski predicted that the currency would strengthen to around z?.3.70 against the euro by February. Marek W?grzanowski X-Trade Brokers Dom Maklerski SA
|
Printer-Friendly Version
Send This Page
Add to Favorites
Comments
News RSS Feeds
