Zloty recovers after coalition split

The zloty strengthened 0.4% to the euro and 0.3% to the dollar in afternoon trading as concerns over the recent coalition break-down began to diminish, dealers said yesterday. Earlier this week the currency hit a 39-month low to the euro on fears over the outcome of June's EU referendum after Prime Minister Leszek Miller ditched the Peasants' Party from the coalition on Saturday. "The market has calmed down. Investors are more optimistic about the future now that we have the worst behind us," said an analyst. The markets shrugged off comments by Finance Minister Grzegorz Kolodko that he was pleased with the current exchange rate of the zloty. Kolodko has long tried to talk down the zloty, saying its strength hurt exports and delayed economic recovery. (Reuters) A.C.