The Fed’s decision to raise interest rates had a strong impact on financial markets. On Wednesday evening, the zloty strengthened strongly. The Polish currency strengthened by more than 1 percent. and was the strongest in nearly two months. Less than 4.3 zł were paid for 1 dollar.
The situation in the Polish economy did not affect the strengthening of the Polish currency. These are the consequences of financial decisions made in the United States.
The US central bank raised interest rates
On March 22, the US central bank, as analysts expected, raised interest rates by 25 basis points. The main rate was raised to 4.75 - 5 percent. The Fed decided to take such a step, despite the crisis that is taking place in the banking system.
- The impact of turbulence in the banking system on credit tightening will be very real, and decision makers should take this into account. This was announced at a press conference by Federal Reserve Chairman Jerome Powell. His words worried American investors, as the statement was perceived as rather mild, according to Rzeczpospolita.
The reaction of the financial market was not long in coming. Wednesday’s session on Wall Street was marked by a strong fall in major stock indexes. The yield on 10-year US bonds fell below 4% to 3.93%. Just a few hours earlier, it stood at 4.25 percent. - we read. According to American analysts, the Federal Reserve is nearing the end of its cycle of raising interest rates.
The strong zloty is the result of US financial decisions.
After the Fed meeting, the Polish zloty strengthened significantly. On Wednesday evening, the zloty strengthened against the dollar following the euro. The Polish currency strengthened by more than 1 percent. and was the strongest in nearly two months. Less than 4.3 zł were paid for 1 dollar.
After the US central bank announced its interest rate decision, the EU currency also rose. The euro was the strongest against the dollar in more than six weeks. The EUR/USD exchange rate reached 1.09.
The consequences of the Fed’s decision also affect currency quotes on Thursday. Most of them recorded significant falls in the morning. The average exchange rate of the dollar fell by 0.57 percent, while the euro recorded a fall of 0.2 percent. The Swiss franc, Japanese yen and British pound are also below the line. Only the Hungarian forint and the Czech koruna recorded a slight increase.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
