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Zloty Reaches Strongest This Year After Rate-Increase Comment

The zloty reached its strongest level this year against the euro after Polish policy maker Jerzy Hausner was cited by the PAP newswire as saying that the central bank may need to consider increasing borrowing costs.

The Polish currency appreciated as much as 0.6 percent to 4.3852 per euro, its strongest since Dec. 28, before paring the gain to 0.4 percent as of 2:14 p.m. in Warsaw.

Interest-rate increases are “definitely more probable” than rate cuts as inflation is likely to stay at “elevated” levels, PAP quoted Hausner as saying today.

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