Polish Zloty at 4-Month High, Forint Gains as Global Growth Concerns Ease
The Polish zloty rose to the strongest in four months and the Hungarian forint advanced for a second day as better-than-expected U.S. jobs report eased concern the global economic recovery was faltering.
The zloty gained 0.5 percent to 3.9211 per euro as of 9:24 a.m. in Warsaw, the strongest intraday level since May 4. The forint advanced 0.4 percent to 283.32 against the common currency.
Asian stocks rose, driving the MSCI Asia Pacific Index to the highest level in four weeks, after a U.S. government report showed on Sept. 3 private payrolls climbed by 67,000 in August, more than the median forecast for an increase of 40,000 in a Bloomberg economist survey. The euro was near a more than two- week high against the dollar before reports this week forecast to show the recovery is gaining strength in Germany, Europe’s largest economy.
“We expect that the positive sentiment on the global stock markets after the publication of better-than-expected data from the U.S. labor market at the end of last week will continue to support the zloty,” Bank BPH economists wrote in a note to clients.
The forint has recovered from the drop to the weakest level in more than month last week as a stronger Swiss franc fueled concern foreign-currency loan defaults may increase. It has been the worst performer among emerging markets this year, weakening 4.8 percent, as Hungary said it won’t seek a new loan from the International Monetary Fund.
Investors should look to sell the forint were the currency to strengthen beyond 283 per euro as “policy uncertainty in a declining growth environment provides a negative backdrop for” the forint-denominated assets, BNP Paribas SA emerging-market strategists wrote in a note to clients.
To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net
Rate this Page