Złoty dips on election results
PR dla Zagranicy
Roberto Galea
25.05.2015 11:45
The Polish currency has dropped to a two-month low following Sunday’s presidential election and exit polls showing that the winner is conservative candidate Andrzej Duda.
Photo: Radio Poland
On Monday, the złoty lost ground against all major foreign currencies, particularly the euro and dollar.
The złoty weakened by 0.5 percent against the euro to 4.1294 by 8:26 am CET on Monday. This was the lowest the Polish currency has been since March 23.
Since the first round of presidential elections on 10 May – when Duda beat incumbent president Bronisław Komorowski, but did not get an outright majority – the złoty has dropped by two percent.
This makes it the third-worst performer among the 24 emerging-market currencies tracked by Bloomberg.
Falling bank shares, weaker złoty and steepening of the yield curve could be an effect of “1) a risk of a Civic Platform’s defeat in general elections, 2) a risk of [a] forced solution on CHF denominated mortgages, 3) a rise of government spending in order to allure more social voters,” tweeted mBank research on Monday.
By the time of writing, the State Electoral Commission (PKW) said that it had counted the votes in 38 of the 51 districts, giving Andrzej Duda the lead with 51.78 percent of the ballot against Komorowski’s 48.22 percent (rg)