Sept. 11 (Bloomberg) -- The zloty rallied to the strongest level in two weeks after JPMorgan Chase & Co. raised its view on the Polish currency and the country sold debt yesterday at a record-low yield.
The zloty jumped as much as 0.6 percent to 4.0973 per euro, the highest since Aug. 28, and traded at 4.0970 as of 4:16 p.m. in Warsaw. The yield on 10-year bonds fell two basis points to 4.81 percent, according to data compiled by Bloomberg.
JPMorgan raised its stance on the zloty to neutral from underweight. The government sold notes maturing in 2023 at a record-low yield of 3.175 percent, Deputy Finance Minister Wojciech Kowalczyk said in an e-mailed statement yesterday. The demand reached $8 billion, he wrote.
Poland’s $2 billion sale of bonds yesterday showed “large foreign interest” in the country’s debt by overseas investors which should “sustain good sentiment on local markets,” economists at Bank Pekao SA including Marcin Mrowiec in Warsaw, said in an e-mailed note to clients today.
The zloty’s appreciation today has extended its advance to 9.1 percent this year, the fourth-steepest appreciation among more than 20 emerging-market currencies tracked by Bloomberg.
The zloty has become more attractive because of the “diminishing concerns surrounding the current account deficit and bond valuations,” George Christou and Laura Bierer, strategists at JPMorgan, said in an e-mailed report today.
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