Zloty Kept Its Cool. Market Euphoria Did Not Impress It

The Polish zloty maintained its composure at the end of the week, showing little reaction to a generally positive market mood fueled by expectations of a US-Iran peace agreement. The euro hovered just below 4.25 Polish zlotys, while the dollar traded around 3.67 zlotys. The Swiss franc also stabilized near 4.61 zlotys.

Optimism surged across markets following reports from the Middle East, where President Donald Trump indicated that a peace deal with Iran was imminent. His remarks revived investor interest in riskier assets, a typical reaction to easing geopolitical tensions.

Despite this broader market enthusiasm, the zloty proved surprisingly resilient, resisting upward pressure. Similarly, the dollar found stability after experiencing a decline the previous day. Analysts noted that investors were adopting a wait-and-see approach, contingent on the finalization of a peace accord that could reopen the Strait of Hormuz.

Konrad Ryczko, an analyst at DM BOŚ, commented on the situation, stating, “The dollar is stabilizing in Friday’s session after Thursday’s weakening – investors held back from making decisions, waiting to see if an agreement ending the conflict in the Middle East could finally be finalized. President Trump announced that the US and Iran could sign a peace agreement opening the Strait of Hormuz as early as this weekend.”

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The dollar is stabilizing in Friday’s session after Thursday’s weakening – investors held back from making decisions, waiting to see if an agreement ending the conflict in the Middle East could finally be finalized. President Trump announced that the US and Iran could sign a peace agreement opening the Strait of Hormuz as early as this weekend.