Bloomberg News

Zloty Advances for First Day in Three on Euro Debt Optimism

August 21, 2012

Poland’s zloty snapped two days of declines on optimism euro-region leaders will make progress on Greece’s debt crisis at meetings this week, boosting appetite for riskier emerging-market assets.

The zloty strengthened 0.2 percent to 4.0617 per euro as of 5:14 p.m. in Warsaw. Yields on 10-year notes fell less than 1 basis point, or 0.01 percentage point, to 4.47 percent.

Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of euro-area finance ministers, visits Greece tomorrow and will discuss a request by Greek Prime Minister Antonis Samaras for a two-year extension to the indebted nation’s fiscal adjustment program. Samaras travels to Berlin and Paris on Aug. 24 and 25 after French President Francois Hollande and German Chancellor Angela Merkel meet in the German capital on Aug. 23. The euro area is Poland’s biggest trading partner.

The zloty should appreciate on “hopes that the talks scheduled by European leaders for the latter part of the week will yield effective tools to fight the crisis,” Grzegorz Maliszewski, chief economist at Bank Millennium SA (MIL), wrote in an e-mailed note to clients today. The currency may “test” the 4.0480 per euro level, according to Millennium.

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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