Quick Look Series: February 1st – 4th Exchange Rates Analysis
By: The Quinnipiac University Economics Research Team, Nicholas Ciampanelli
Early into February, the exchange rates against the Euro of Central and Eastern European currencies frequently split from their trends at the end of January. That was particularly evident with the Hungarian Forint and the Polish Zloty, which progressively strengthened throughout the week. Exchange rate data was limited to Monday through Thursday this week.
Starting with the Czech Koruna, this currency continued its trends from January, with its exchange rate continuously declining throughout the week. Starting at a rate of CZK 25.975, the Koruna’s exchange rate fell to a weekly low of CZK 25.895 on Thursday, February 4th. That is the lowest rate since the onset of the COVID-19 pandemic in March 2020.
The Hungarian Forint illustrated a break from its January trends, for it consistently strengthened throughout the week. Starting at a rate of HUF 356.35, the Forint’s exchange rate fell to a value of HUF 355.59 on Thursday, February 4th. This strengthening in the Forint to Euro rate reaffirms its volatility, given its frequently changing behavior throughout previous months.
The Polish Zloty’s exchange rate also deviates from its trends in January, as evident from the currency strengthening throughout the week. The Zloty’s exchange rate fell from PLN 4.508 to a value of PLN 4.4941 on February 4th. Despite being a marginal change, recent observations indicate the Zloty’s exchange rate may deviate from prior trends from the end of January.
Lastly, the Romanian Leu’s exchange rate consistently weakened throughout the previous week. Starting at a rate of RON 4.8735, the Leu closed Friday at a weekly high of RON 4.8755. These marginal changes in the Leu’s exchange rates are consistent with recent history, further indicating the currency is in a period of mild weakening.