Bloomberg News

Zloty Reaches Three-Month High as Bonds Rise on Greece Optimism

January 24, 2012

Jan. 23 (Bloomberg) -- The zloty gained to its strongest in almost three months against the euro and Polish government bonds extended last week’s rally as optimism Greece will agree to a debt swap boosted demand for riskier assets worldwide.

The Polish currency added 0.7 percent to 4.2851 per euro by 3:18 p.m. in Warsaw, its highest level since Oct. 28. Bonds climbed, sending five-year yields down by four basis points, or 0.04 percentage point, to 5.06 percent, the lowest since Nov. 8, according to generic bond indexes compiled by Bloomberg.

European stocks and the euro rallied as finance ministers gathered in Brussels to discuss new budget rules and a Greek debt swap. Bondholders negotiating the swap with Greece have made their “maximum” offer, leaving it to the European Union and International Monetary Fund to decide whether to accept the deal, said Charles Dallara, managing director of the Institute of International Finance, who represents the private creditors.

--Editors: Linda Shen, Alex Nicholson

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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