Zloty Heads for Second Monthly Fall on Euro-Area Debt Concern

The zloty weakened against the euro, heading for a second monthly loss, after a report showed Spain’s economy entered its second recession since 2009 amid Europe’s debt crisis.

Poland’s currency depreciated 0.1 percent to 4.1731 per euro as of 4:37 p.m. in Warsaw. The zloty lost 0.5 percent so far in April, adding to a 0.7 percent drop in March. It has appreciated 7 percent this year, making it the fourth-best performer among more than 20 emerging market currencies tracked by Bloomberg.

The government’s benchmark 10-year bonds dropped nine basis points to 5.4 percent and two-year bonds climbed two basis points to 4.64 percent.

Gross domestic product in Spain, the euro area’s fourth- largest economy, fell 0.3 percent, the same as in the previous three months, the Madrid-based National Statistics Institute said today. From a year ago, GDP slid 0.4 percent. The euro region is Poland’s main export market.

To contact the reporter on this story: Piotr Bujnicki in Warsaw pbujnicki@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net