Polish Zloty Gains First Week in Three as ECB Plan Spurs Rally
The Polish zloty advanced for the first week in three as the European Central Bank’s plan to buy bonds of the euro area’s most indebted countries bolstered appetite for riskier assets.
The zloty advanced 0.5 percent to 4.1040 per euro as of 5:25 p.m. in Warsaw. It appreciated 1.6 percent this week, the steepest gain among more than 170 currencies tracked by Bloomberg.
ECB President Mario Draghi said yesterday policy makers agreed to an unlimited bond-buying program for struggling common currency nations. It also eased borrowing against government- issued or guaranteed assets by dropping rating requirements.
“The improvement in the euro area, reduced volatility and expectations for quantitative easing are all positive factors for high-yielding currencies, including the zloty,” Rafal Benecki, chief economist for Poland at ING Groep NV in Warsaw, wrote in an e-mailed note to clients.
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