currency markets reacted to escalating political tensions in the United States on Monday, with the dollar weakening against several currencies including the Polish złoty, euro, and Swiss franc.The shift followed reports of a legal threat from the Trump administration against Federal Reserve Chair Jerome Powell, prompting concerns about potential political interference in monetary policy [[1]]. Investors responded by moving assets into safe-haven investments like gold, which reached a record high amid the uncertainty.
Currency Exchange Rates – Monday, January 12th
Table of Contents
The dollar edged lower against the Polish złoty on Monday, January 12th, trading at approximately 3.60 złoty around 9:45 AM, down 0.50%. The euro was valued at 4.21 złoty, a decrease of 0.08%. The Swiss franc strengthened to 4.52 złoty, gaining 0.06%, while the British pound fell to 4.85 złoty, down 0.15%. The EUR/USD exchange rate was 1.169 dollars, up 0.44%. Bitcoin was trading around $91,000.
National Bank of Poland Average Exchange Rates – Friday, January 9th
According to the National Bank of Poland’s (NBP) fixing rate around noon on Friday, January 9th, the dollar was valued at 3.62 złoty, and the euro at 4.21 złoty. The Swiss franc was quoted at 4.55 złoty, and the British pound at 4.85 złoty.
Dollar Weakens, Gold Hits Record High Amid U.S. Political Tensions
Concerns surrounding potential political interference in monetary policy weighed on the dollar and U.S. equities on Monday. The Trump administration has reportedly threatened to pursue legal action against Federal Reserve Chair Jerome Powell over testimony given to Congress in the summer of 2025 regarding a proposed renovation of the U.S. central bank’s headquarters. The Department of Justice has issued a subpoena to the Federal Reserve. Powell has stated that this action is a pretext to exert greater influence over the Fed and monetary policy. “The question is whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be driven by political pressure or intimidation,” Powell said in a statement. This development underscores the sensitivity of financial markets to political risk.
The escalating dispute between Trump and Powell triggered a sell-off in the dollar and U.S. equity futures on Monday. Simultaneously, gold prices surged past $4,600 per ounce for the first time, establishing a new record high as investors sought safe-haven assets. “Investors are still struggling to digest the latest escalation of the dispute,” Reuters reported.
Macroeconomic Calendar
Below is a macroeconomic calendar for Monday, January 12th, 2026, prepared by analysts at Macronext:
- Eurozone – Public appearance by ECB Executive Board member Luis de Guindos;
- 10:30 AM CET: Eurozone – Sentix Index, January (forecast: -5; previous: -6.2);
- 11:30 AM IST: India – CPI Inflation (y/y), December (forecast: 1.4%; previous: 0.7%);
- 6:30 PM EST: USA – Speech by Federal Reserve Bank of Atlanta President Raphael Bostic;
- 6:45 PM EST: USA – Speech by Federal Reserve Bank of Richmond President Tom Barkin.
