Bloomberg News

Zloty Advances Versus Euro as Greek Pro-Bailout Parties Gain

May 28, 2012

The zloty appreciated following its fourth consecutive weekly loss as Greek opinion polls showed growing support for parties backing a bailout plan.

The zloty gained 0.5 percent to 4.3443 per euro as of 11:28 a.m. in Warsaw. It pared this month’s loss to 3.9 percent, the second-steepest among more than 20 emerging-market currencies tracked by Bloomberg.

Greece’s New Democracy placed first in all six opinion polls published on May 26 as campaigning continued for the general election on June 17. The zloty hit a four-month low May 16 on concern Greece will abandon the euro. The decline prompted the Finance Ministry to say it was converting foreign currencies from the European Union funds on the market.

The opinion polls “should help boost the zloty slightly in the short-term, but the impact is likely to be temporary,” Piotr Kalisz, chief economist at Citigroup Inc.’s Bank Handlowy SA unit in Warsaw wrote in an e-mailed note. “It’s hard to assess to what extent the return of optimism will be sustainable as we still have several weeks to go before the Greek election.”

To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

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


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