Bloomberg News

Zloty Climbs to Strongest in Five Weeks as Greece Wins Debt Deal

November 27, 2012

The zloty jumped to the strongest level in more than five weeks and Poland’s bond yields fell as European officials eased the terms on emergency aid for Greece, boosting risk appetite for emerging-market assets.

The zloty appreciated as much as 0.2 percent to 4.0907 per euro, the strongest level since Oct. 18, and traded at 4.0965 as of 5:04 p.m. in Warsaw. The yield on five-year notes fell five basis points, or 0.05 percentage point, to 3.72 percent.

Euro-region finance ministers cut the rates on Greece’s bailout loans, suspended interest payments for a decade, gave the nation more time to repay and engineered a bond buyback. The country was also cleared to receive a 34.4 billion-euro ($44.7 billion) loan instalment in December. Emerging-market stocks rose to the highest level in almost three weeks.

“The zloty is benefiting from improved sentiment on global markets,” Bank Pekao SA (PEO) economists led by Marcin Mrowiec in Warsaw wrote in an e-mailed note today. “While the decision to releases another aid tranche for Greece was to be expected, it supported optimism and demand for riskier assets.”

To contact the reporter on this story: Piotr Skolimowski in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

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