Bloomberg News

Zloty Gains on German Vote, Pares Worst Quarter in 2-1/2 Year

September 29, 2011

Sept. 29 (Bloomberg) -- Poland’s zloty strengthened against the euro, paring its steepest quarterly loss in 2 1/2 year, after Germany’s lower house of parliament approved the expansion of a bailout fund for debt-stricken euro-area nations to help contain the sovereign-debt crisis.

The zloty gained 0.3 percent to 4.4273 per euro as of 1:53 p.m. in Warsaw. The Polish currency has weakened 10 percent since the end of June, poised for the biggest quarterly loss since the first three months of 2009 and the worst slide among 176 currencies tracked by Bloomberg.

German Chancellor Angela Merkel won the backing of her coalition to expand the powers of the European Financial Stability Facility. The yen weakened as Asian and European stocks reversed losses, spurring demand for higher-yielding assets.

“The vote in Germany was a good news,” said Gaelle Blanchard, an emerging-market strategist at Societe Generale SA in London. “The mood remains cautious though and people are holding their breath to see how things are going to develop.”

--Editors: Linda Shen, Wojciech Moskwa

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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