The Polish zloty’s foreign exchange rate gained or a third day against the euro and the US dollar as speculation Hungary will secure an international bailout boosted demand for assets across the European Union’s east.
The Polish zloty appreciated as much as 0.8 percent to 4.3285 per euro, its strongest since Nov. 4, before paring the gain to 0.4 percent as of 10:10 a.m. in Warsaw. The forint surged 1 percent versus the euro and the Czech koruna added 0.3 percent.
Hungary is ready to comply with demands from the EU over a central bank law, Prime Minister Viktor Orban said today in an interview for Bild newspaper. The EU yesterday threatened a lawsuit against the EU’s most-indebted eastern member for encroaching on the central bank’s independence, a dispute that halted bailout talks with the International Monetary Fund.
“If the forint advances, the same happens to the zloty,” Joanna Bachert, an analyst at PKO Bank Polski SA in Warsaw, said by phone today. “While most people on the market don’t put the two countries in the same basket, the biggest global banks do.”