The Polish zloty advanced following its three-day losing streak on speculation a new Greek government will seek amendments to its bailouts after elections.
The zloty appreciated 0.4 percent to 4.3248 per euro as of 2:33 p.m. in Warsaw. It was the fourth steepest gain among more than 20 emerging-market currencies tracked by Bloomberg. The yield on five-year notes fell four basis points, or 0.04 percentage point, to 4.92 percent.
European leaders may consider relaxing Greece’s austerity program after the June 17 election, the Financial Times Deutschland reported. The zloty is recovering from its worst decline in eight months in May sparked by concern that Greece will exit the euro area, which is Poland’s biggest export market. Traders increased their bets for swings against the euro in the next month to 12.9 percent, the highest since Dec. 6, based on a gauge of implied volatility used for pricing option contracts on Bloomberg.
“We are seeing increased volatility on the zloty market,” Aleksandra Bluj, an analyst at PKO Bank Polski SA wrote in an e-mailed note to clients. “The restless mood on the global market continues to be the main drive for the zloty.”