Polish Zloty Drops on Concerns About Slowing Inflation
The Polish zloty went down today on speculations that a report this week may show that inflation slowed last month for the fourth consecutive month, giving the central bank incentive to lower interest rates.
Analysts estimated that inflation declined from 2.4 percent in December to 2 percent in January, the lowest level since August 2010. The National Bank of Poland may cut interest rates yet again after it has lowered borrowing costs by 100 basis points since November. The unfavorable domestic fundamentals added to the downside pressure on the zloty, caused by the general risk aversion sentiment.
USD/PLN went up from 3.0968 to 3.1075 as of 16:21 GMT today, while its daily high was at 3.1178.
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Earlier News About the Polish Zloty:
- Zloty Remains Strong Even as Poland's Central Bank Cuts Rates (2012-12-05)
- Zloty Gains as Investors Show Interest in Polish Assets (2012-09-11)
- Zloty Drops as Samaras Talks to Merkel (2012-08-24)
- Zloty Rises with Poland's Retail Sales (2012-03-26)
- Zloty Gains as Polish Retail Sales Grow with Increased Pace (2012-02-24)