Currencies Are on the Mend in Eastern Europe, With One Exception

  • Poland’s is only currency in region to be weaker since Brexit
  • Forecasters don’t predict zloty gains until late-2017

Olivier Blanchard: We Are Not in a Currency War

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Brexit sparked a rout in the currencies of eastern Europe. Three weeks on, only Poland’s zloty has yet to heal.

Forecasters say there’s little prospect of a sustained rally in the currency for at least another year. The zloty may have recovered most of its 4 percent drop versus the euro in the immediate wake of the U.K.’s decision to leave the European Union, but it’s still down about 0.9 percent since the vote last month.