Sept. 15 (Bloomberg) -- The Polish zloty jumped the most in almost 10 months against the euro after the European Central Bank said it will lend dollars to euro-area banks.
The zloty appreciated as much as 2.1 percent to 4.3094 per euro, the steepest intraday gain since Nov. 30, 2010. It traded 1.3 percent stronger at 4.3411 versus the Europe’s common currency as of 5:29 p.m. in Warsaw. It’s the biggest advance among 176 world’s currencies tracked by Bloomberg.
The Frankfurt-based ECB said that, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, it will conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months to ensure they have enough of the U.S. currency through the end of the year.
“We have recouped the gains from the last few days and people just ride the market,” Nigel Rendell, a senior emerging- market strategist at RBC Capital in London, said by phone. The coordinated move “certainly papers over some cracks but we are yet to see whether the new cracks appear in the eurozone in the coming days. Greece still has a problem with debt that needs to be solved.”
Germany and France earlier reiterated support for Greece helping the euro rebound. The International Monetary Fund, European Central Bank and European Commission representatives will visit Greece this week and later make a recommendation on the release of further loans to the nation. The franc weakened against the euro after the Swiss National Bank said it is ready to take further steps to stop the currency from gaining.
The zloty’s 14-day relative strength index fell to 20.1 yesterday. It was the fourth day the index stayed below the 30 level that signals an asset is due for an advance. The RSI identifies possible turning points in indexes or securities by measuring the degree that gains and losses outpace each other in a given time period.
--Editor: Gavin Serkin
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