Polish Zloty, Bonds Retreat as June Current-Account Gap Widens
The zloty weakened for a second day and bonds fell after Poland’s current-account deficit widened.
The zloty depreciated 0.2 percent to 4.0844 per euro at 3:53 p.m. in Warsaw, extending the steepest 0.2 percent loss last week among 20 emerging-market currencies tracked by Bloomberg. Yields on two-year treasuries rose 3 basis points, or 0.03 percentage point, to 4.087 percent, rebounding from a record low on Aug.7.
Poland’s current-account gap jumped to 1.24 billion euros ($1.53 billion) in June from 749 million euros a month earlier, the Warsaw-based Narodowy Bank Polski said in an e-mailed statement today. The government may revise its 2013 growth forecast to as low as 1.5 percent from 2.9 percent, Dariusz Filar, an economic adviser to Prime Minister Donald Tusk, said in an Aug. 6 interview.
“The data confirmed weakness in domestic demand, which doesn’t bode well for the Polish economy in the coming quarters,” economists at Bank Zachodni WBK SA (BZW) led by Maciej Reluga wrote in a note to clients today.
The monthly current-account shortfall was smaller than the median forecast of 1.46 billion euros in a Bloomberg survey of 24 economists. Both exports and imports declined from May, data showed. The euro region buys 53 percent of Poland’s exports.
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