Polish zloty hits 1-month high following Fed’s decision to keep rates unchanged

The Polish zloty hit a one-month high, following the outcome of the Federal Open Market Committee (FOMC) meeting held Wednesday, where it decided to remain on hold, striking a possibility of a December rate hike.

The zloty appreciated immediately after the decision had been announced and has extended its gains further in today´s early trading (up to hitting a one-month high against the euro). Lack of FOMC action has also supported Polish government bonds, 10-year yields of which have gone down by about six points this morning.

It is pretty sure that echoes of the FOMC meeting will remain to be a key factor in today´s trading. Although stable US rates are positive from the perspective of both the forint and the zloty, there is considerable room for further gains of the latter due to the stability limited as the FOMC still appears ready to raise its rates by the end of 2016 (probably in December).

Meanwhile, the upcoming elections in the United States are also expected to lower demand for riskier assets in weeks ahead.