Bloomberg News

Zloty Drops as Polish Output Slumps, Current-Account Gap Widens

January 18, 2013

The zloty retreated to its weakest level in two months after reports showed December industrial output slumped and the current-account deficit widened in November.

The zloty slid 0.7 percent to 4.1460 per euro as of 2:50 p.m. in Warsaw, the weakest level since Nov. 19. It had the third steepest decline among more than 20 emerging-market currencies tracked by Bloomberg. The yield on government notes maturing in July 2014 fell 2 basis points to 3.32 percent.

Polish industrial output fell 10.6 percent from a year earlier last month, the steepest drop since April 2009, the statistics office said today, boosting expectations for an interest-rate cut next month to spur the European Union’s largest eastern economy. November current-account deficit widened to 1.49 billion euros ($1.98 billion) from 650 million a month earlier, the central bank said today.

“Interesting set of numbers coming out, but all told all pretty bearish for the zloty,” Timothy Ash, head of emerging- market research at Standard Bank Group Ltd. in London, said in e-mailed comment today. “I have been arguing that the zloty is ripe for a correction for some time and this data kind of supports that view.”

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

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus