Zloty Retreats as Euro Area Contraction Deepens Polish Gloom
The zloty weakened after a report showed the euro-area economy, Poland’s biggest export market, shrank the most since 2009.
The currency is heading for the steepest decline among emerging-market peers this week as the regional economic slowdown deepens. Poland’s central bank has cut interest rates four times since November to ease the economy.
Gross domestic product fell 0.6 percent in the fourth quarter from the previous three months, the European Union’s statistics office in Luxembourg said today, as the region’s three biggest economies suffered slumping output. Poland sends 51.8 percent of exports to the euro area.
“Worse-than-expected readings from the euro-area economy are weighing on the zloty,” Grzegorz Maliszewski, chief economist at Bank Millennium SA in Warsaw, said in an e-mailed note today.
The zloty slid 0.5 percent to 4.1794 per euro as of 3:35 p.m. in Warsaw. It’s down 0.7 percent this week, the most among more than 20 emerging-market currencies tracked by Bloomberg.
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