By: The Quinnipiac University Economics Research Team, Nicholas Ciampanelli
Throughout the past week, Central and Eastern Europe’s various currencies experienced unique shifts in their exchange rate, as related to the Euro.
Starting with the Czech Republic’s Koruna, its exchange rate noticeably declined in the beginning of the week, falling by greater than 1 Koruna and strengthening its value in relation to the Euro. However, its exchange rate grew throughout the week until plateauing at a value between 26.46–26.465 Koruna per Euro. These exchange rates are somewhat consistent with the observed trends from the end of October, for the value of the Koruna is becoming progressively stronger, as seen in the beginning of the week. However, positive changes in the exchange rate later in the week allude to a potential change in this trend.
Regarding the Hungarian Forint, its exchange rate temporarily rose until gradually declining after Tuesday. The Forint reached its strongest exchange rate on Thursday at a value of 355.2 Forints to 1 Euro, followed by a slight increase in the exchange rate on Friday. This is consistent with trends from the end of October, indicating the Forint is consistently becoming stronger in relation to the Euro.
Regarding the Polish Zloty, its exchange rate increased early in the week until mildly falling on Wednesday. Following this, the currency plateaued at a value just below 4.49 Zlotys to 1 Euro for the remainder of the week. These exchange rates are inconsistent with the observed trends from the end of October, for the value of the Zloty weakens in relation to the Euro, as seen with the rise in the exchange rate in the beginning of the week. Although the Zloty’s exchange rate plateaus later in the week, it is uncertain if the exchange rate will follow recent trends or if the currency’s value will weaken in the coming weeks.
Lastly, the Romanian Leu’s exchange rate continuously rose in a near-linear pattern throughout the week. The currency was valued at 4.8655 Leu to 1 Euro on Monday, ultimately rising to a value of 4.8698 Leu to 1 Euro on Friday. These exchange rates are inconsistent with observed trends from the end of October, for the Leu’s value becomes progressively weaker in relation to the Euro. If these trends continue, the value of the Leu will continue declining over time, making the Euro more valuable in-comparison to this currency.