Zloty Weakens From Four-Week High as European Concerns Resurface
The Polish zloty retreated from a four-week high after European Union finance minister failed to make headway about new banking regulations for the bloc.
The zloty lost 1 percent to 4.1028 per euro as of 5:06 p.m. in Warsaw, the steepest decline among more than 20 emerging- market currencies tracked by Bloomberg. The yield on 10-year notes rose 2 basis points to 4.97 percent.
While the Polish zloty jumped to the strongest level since Aug. 17 last week as the Federal Reserve pledged to buy bonds until the U.S. job market improves, it weakened after EU finance ministers meeting in Cyprus didn’t agree on the timetable for a more unified banking system.
“The profit-taking that has set in after a few days of gains will probably turn investors’ attention to local factors,” Marcin Mrowiec, chief economist at Bank Pekao SA (PEO) wrote in an e-mailed note to clients. “These are unlikely to be conducive to zloty’s appreciation.”
Polish industrial output growth probably slowed to 1.2 percent last month from 5.2 percent in July, the statistics office will say on Sept. 19, according to a median estimate in a Bloomberg survey of economists.
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