Zloty Weakens to 2-Month Low on Greece Aid Flare-Up, German Data
The Polish zloty weakened to a two- month low as Euro-area finance ministers delayed a decision on financial aid to Greece while German investor confidence unexpectedly declined.
The zloty lost 0.2 percent to 4.1715 per euro as of 4:51 p.m. in Warsaw after touching the lowest since Sept. 6. It retreated 0.8 percent this month for the steepest drop among more than 20 emerging-market currencies tracked by Bloomberg. The yield on two-year notes was unchanged at 3.72 percent.
The euro area’s finance ministers put off until Nov. 20 a decision on how to cover additional Greek needs of as much as 32.6 billion euros ($41.3 billion) and left unclear whether the International Monetary Fund will continue to contribute. Germany’s ZEW Center for European Economic Research’s index of investor and analyst expectations, which aims to predict economic developments six months in advance, fell to minus 15.7 from minus 11.5 in October, lagging analyst expectations.
“The market continues to be driven by external events including the news from Greece and weak data,” Joanna Bachert, an analyst at PKO Bank Polski SA, wrote in an e-mailed note today. “From a technical perspective, the weakness has opened the way to another resistance level between 4.18 and 4.20 per euro.”
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