Poland’s Government Consider Zloty’s Depreciation Desirable

The Polish zloty pared its yesterday’s gains against the U.S. dollar and dropped versus the euro today on the concerns about the widening European sovereign-debt crisis, while the Polish government isn’t going to take actions as it considers the currency’s depreciation desirable.
The European economy was weakened by the Germany’s decision to ban naked short selling of the government bonds as the Germany’s government hadn’t informed the European Central Bank about its plans. This signals that the EU governments aren’t unified in their actions against the crisis. As the European Union is the biggest trading partner of Poland its troubles affect Poland and its currency.
Poland’s government isn’t worried, though, and isn’t going to take actions to support the zloty. The zloty’s depreciation is considered desirable as it’ll bolster the nation’s competitiveness by helping the country’s exporters.
USD/PLN traded near 3.3534 as of 15:58 GMT today after opening at 3.2906. EUR/PLN traded at about 4.1494 after it opened at 4.1061.

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