BofA sees Polish zloty gains from Q4 on expected dollar weakness

Bank of America expects the Polish zloty to strengthen from the fourth quarter, largely on anticipated U.S. dollar weakness after Q3. The bank said the rate differential between Poland and the ECB should have limited impact on EUR/PLN, as current market pricing already reflects hawkish scenarios for both central banks. Near-term downside for the zloty may be capped by concerns about possible intervention from Poland’s state development bank, BGK. Overall, the note is bullish for the zloty versus major currencies, but BofA did not provide a specific EUR/PLN target or a forecast timeline beyond Q4.