Zloty Advances as European Assets Rise on Spain, Deutsche Bank

The zloty advanced after stronger earnings results from Deutsche Bank AG and a Spanish report showing the economy shrank less than forecast boosted demand for European assets.

The zloty appreciated 0.5 percent to 4.1286 per euro as of 5:38 p.m. in Warsaw, the strongest gain among more than 20 emerging-market currencies tracked by Bloomberg. Yields on five- year Polish notes rose one basis point to 4.13 percent.

Deutsche Bank, Germany’s largest lender, said profit unexpectedly rose as investment-banking revenue exceeded targets. Italian borrowing costs dropped at an auction of five and 10-year debt today while the Spanish economy shrank 0.3 percent in three months to September, compared with the Bank of Spain’s estimate of a 0.4 percent contraction. The euro area is Poland’s largest export market.

“Slightly better data on Spanish GDP have improved the sentiment a bit,” Joanna Bachert, an analyst at PKO Bank Polski SA, wrote in an e-mailed note to clients.

The zloty weakened 0.4 percent yesterday after Andrzej Raczko, a member of the central bank’s management board, said short-term depreciation of the currency was “desirable” as it would help boost Poland’s exports. It has gained 8.1 percent this year, the third-best among emerging-market currencies tracked by Bloomberg after the Hungarian forint and Chilean peso.

To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.