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The polish Zloty getting stronger versus British pound? [15]
Like jones101, I cannot see any reason for Sterling to be falling against the Euro as the British economy is supposed to be in a sound position. Could it possibly be that the British public are being lied to yet again?
Currency values are largely determined on the free market, and it would take either a) a tremendous amount of cash, b) a monstrous conspiracy or c) both of these to move the prices as much as they have over the past few years. Fact is the pound may be suffering from the UK's engagement in the USA's war against the infidels, ehm... I mean terrorists. Its economy is also more reliant on the American, and there's no end of the sub-prime crisis in sight.
On the other hand the zloty benefits from a) Poland's overall sound economy, b) its accession to the EU, which to investors has made it seem much safer than previously, c) relatively high interest rates compared to most other stable economies (meaning more profits for bond investors) and d) continuing foreign direct investment in the country, which has to be converted to zlotys, driving up demand for the currency.
I'd say that all points to continued growth. Of course anything can happen in the real world.