July 23 (Bloomberg) -- The zloty strengthened to a six-week high per the euro, extending its longest rally since July 2010, on signs Poland’s economic growth may be recovering.
Poland’s currency gained for a ninth day, advancing 0.1 percent to 4.2092 against the euro at 5:43 p.m. in Warsaw. It has appreciated 3.1 percent since July 10, the best performance among the more than 170 currencies tracked by Bloomberg.
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 this month on speculation the U.S. Federal Reserve will refrain from quickly reducing monetary stimulus policies that have driven capital to higher-yielding emerging-market assets, including in Poland.
“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,” Abbas Emali-Renani, a London-based emerging- markets strategist at Royal Bank of Scotland group Plc, said by e-mail today.
Yields on the Polish government’s 10-year bonds increased 13 basis points, or 0.13 percentage point, to 3.92 percent, rising for the first time in four days.
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