Zloty slips amid concerns about Western market turbulence and RPP pessimism
The sudden drop of the zloty yesterday caught foreign currency market
investors off guard, as the domestic currency slid to a closing value of
zl.4.08 to the dollar and zl.3.75 to the euro, falling zl.0.08 and zl.0.05,
respectively, on Mondays closing figures. Witold Chusc, an analyst from
Bank Handlowy, said the drop was due to investor concerns over higher-risk
countries vulnerability to the recent nose dive Western markets have taken.
He continued to say that Monetary Policy Council (RPP) members also sent
discouraging signals to foreign investors when it asserted that there were
no economic grounds for a strong zloty. Chusc speculates that in light of
these facts some investors may have decided to take profits before the zloty
slips any further. (Gazeta Wyborcza, p.25) M.-S.C.
