Polish Złoty Weakens 3.3% Over Past Month as Rate-Cut Bets Rise
The Polish currency has lost ground against the dollar and euro in June, with the USD/PLN rate rising above 3.76, affecting expats paid in foreign currency.
The Polish złoty has weakened noticeably over the past month, with the USD/PLN exchange rate climbing to 3.76 as of June 25, up 3.34% from a month earlier. Against the euro, the złoty has also softened, with EUR/PLN hovering near 4.26, down from a recent high of 4.18 in mid-June.
The decline reverses a period of relative stability earlier in the year and marks the złoty's weakest level in several months, driven by shifting expectations around Poland's monetary policy and global risk sentiment.
Why the złoty is losing ground
The weakening comes as markets price in the possibility of further interest-rate cuts by the National Bank of Poland later in 2026. With inflation cooling faster than expected—dropping to 3.1% in May—traders are betting the central bank may resume its easing cycle in the autumn, narrowing Poland's interest-rate advantage over the eurozone.
At the same time, uncertainty around the Middle East conflict and volatility in energy markets have weighed on emerging-market currencies more broadly. Poland's złoty is sensitive to shifts in global risk appetite, and recent jitters have prompted some portfolio outflows from Polish assets.
Over the past 12 months, the złoty has depreciated 3.77% against the dollar, though it remains stronger than its lows during the 2022–2023 inflation crisis.
What it means for you
If you're paid in euros or dollars: Your salary buys more złoty than it did a month ago. A €3,000 monthly salary now converts to roughly 12,780 zł, up from around 12,540 zł in mid-May—a meaningful boost to your local purchasing power. This is good news if you're paying rent, groceries, or utilities in złoty. If you're sending money abroad or holding złoty savings: The opposite applies—your złoty buys less foreign currency. Transferring 10,000 zł abroad now yields about $2,657, down from $2,750 a month ago. If you're planning a summer trip to the eurozone or transferring savings home, the timing is less favorable. If you have a foreign-currency mortgage: A weaker złoty increases the złoty cost of servicing euro- or dollar-denominated loans, though these are now rare for new borrowers.
Sources
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