The Canadian Dollar is trading at 2.92 against the Polish Zloty this morning, up 0.01% with a YTD return of -0.11%. The pair’s open rate sat at 2.9278, similar to their previous close at 2.9280. CAD/PLN is expected to have a daily range between 2.91 and 2.92, their 52-week range is forecasted to move between 2.73 and 3.02.
At the end of July 2020, CAD/PLN exchange rate dropped to 2.77 but since has been on the road to recovery jumping to 2.99 at the end of November. The pair went back down to the 2.86 range by the end of last year but quickly surged back to the 2.90 level moving into January.
Over the last month, CAD/PLN has continued to experience bullish trading tendencies but has managed to stay above the 2.90 support level as February progresses. Control of COVID-19 numbers and crude oil prices has helped back the loonie which has investors optimistic for CAD market success in the coming weeks.
Bloomberg reported that on Monday, the International Monetary Fund (IMF) suggested that “the Polish central bank should more clearly spell out why it was trying to weaken the zloty.”
The IMF also noted that “quantitative-easing was the best way to support the economy” and “further support for monetary easing would be best achieved through expanded asset purchases.”
Polish policymakers argued that PLN has been facing pressure due to appreciations that would delay the pace of economic recovery in the country. The IMF said that “beyond smoothing excess volatility, FX intervention may be appropriate for monetary policy purposes if it is part of a well-specified and clearly communicated strategy”.
By Surina Nath