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The Polish Zloty firmed against the U.S. dollar in the European session on Monday, as risk sentiment improved after U.S. President Donald Trump did not take new steps against China, de-escalating the trade war.
Survey data from IHS Markit showed that Poland's manufacturing sector contracted at the second sharpest pace since January 2009, due to ongoing lockdown restrictions designed to contain the spread of coronavirus, or Covid-19, pandemic.
The manufacturing Purchasing Managers' Index, or PMI, rose to 40.6 in May from a record low of 31.9 in April.
The Polish Zloty rose to 3.9624 against the greenback, its strongest since March 16. If the currency rises further, 3.8 is seen as its next resistance level.
