Doves Circling Polish Central Bank Spell More Trouble for Zloty
- Poland's zloty is worst-performing EM currency this month
- Law & Justice favors rate-cut advocates in central bank
The Narodowy Bank Polski
Photographer: Piotr Malecki/BloombergThis article is for subscribers only.
The odds are stacking up against the Polish zloty as a landslide victory by the opposition party puts interest-rate cuts back on the central bank’s agenda.
Bearish bets on this month’s worst-performing emerging-market currency outweigh bullish wagers, according to options data on Monday, suggesting there may be more losses in store as the Law & Justice party looks set to take a majority of seats in parliament. As the currency fell 0.7 percent against the euro in October, BNP Paribas SA said the exchange rate may weaken further, while Barclays Plc said in a report this week it favored the Hungarian forint over the zloty.