The zloty weakened against the euro, ending an eight-day winning streak that helped it reach a six-week high yesterday.
Poland’s currency lost 0.1 percent to 4.2184 against the euro at 3:33 p.m. in Warsaw, reducing gains from the longest uninterrupted rally since July 2010 to 2.9 percent, the best performance among over 170 global currencies tracked by Bloomberg. Hungary’s forint fell 0.4 percent and the Czech koruna lost 0.2 percent.
The zloty lost gains recorded after Poland’s retail sales rose in June by 1.8 percent from last year, the fastest pace since January and beating a 1.1 percent median estimate from Bloomberg survey of 30 economists. The currency appreciated in past days on speculation the U.S. Federal Reserve will refrain from quickly reducing monetary stimulus policies that have driven capital to emerging-market assets earlier this year.
“The weakening we’ve seen today has been in line with the broader market move, particularly in other currencies in the region,” Abbas Emali-Renani, a London-based emerging markets strategist at Royal Bank of Scotland, said by e-mail. “On the back of signs that the economy may have bottomed out, I see room for further currency strength down to 4.15, before the zloty starts looking expensive again.”
Yields on the Polish government’s 10-year bonds increased 16 basis points, or 0.16 percentage point, to 3.95 percent, rising for the first time in four days.
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