The Polish zloty opened the week on a strong note, recovering recent losses against major currencies as global risk appetite improved.
The currency's rebound against the euro, US dollar, British pound, and Swiss franc reflects a broader shift in market sentiment driven by de-escalation in the Middle East.
Crude oil benchmarks fell sharply following a weekend of relative calm in the region, alleviating immediate fears of supply disruptions.
The retreat in energy prices has reduced inflationary pressures and lowered the cost of imports for energy-dependent economies, providing a tailwind for emerging market currencies like the zloty.
This cross-asset shift mirrors movements in other safe-haven and risk-sensitive instruments.
Gold prices, which had dipped earlier in the week, recovered to close higher on Friday, finishing with a weekly gain as investors adjusted their positioning away from extreme risk-off scenarios.