Zloty Gains as Traders Expect Intervention from Central Bank
The Polish zloty advanced today, gaining for the third straight trading session, as Forex market participants expect the nation’s central bank to take actions to support the depreciating currency.
The weakening currency increased the zloty value of the country’s debt. Poland’s public debt increased to 52.8 percent of gross domestic product in 2010. That’s a dangerous level as an increase above 55 percent would result in compulsory spending cuts and tax increases under public-finance laws. The National Bank of Poland and state-owned Bank Gospodarstwa Krajowego were selling dollars and euros to counter the depreciation of the zloty.
USD/PLN fell from 3.3619 to 1.3514 before trading at 3.3583 as of 12:16 GMT today.
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Earlier News About the Polish Zloty:
- Polish Central Bank Keeps Rates High to Support Zloty (2011-12-07)
- Poland's Current Account Deficit Weakens Zloty (2011-02-14)
- Zloty Rise as Policy Makers Signal About Higher Interest Rates (2011-01-11)
- Zloty Drops After Rally on Anticipation of Interest Rates Hike (2011-01-07)
- Polish Zloty Rebounds as Inflation Reaches 11-Month Record (2011-01-03)