Poland’s central bank governor Marek Belka said on Thursday that the Polish zloty’s exchange rate was still trading below its fair value on currency markets.
“The Polish zloty remains undervalued,” Belka told journalists in Moscow, speaking in English. “But whether it sustains the next wave of turbulence in Europe – God knows.”
He added that the central bank is ready to carry on with interventions to support the zloty, if necessary.
“We have pledged that we are on the market constantly – at random walk.”
Poland’s zloty strengthened for a third day against the euro and dollar on Wednesday as speculation Hungary will secure an international bailout boosted investor demand for assets across the European Union’s east.
The 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 5:23 p.m. in Warsaw. The forint surged 1.1 percent versus the euro and the Czech koruna added 0.4 percent.