Poland: Zloty continues to appreciate in January
January 31, 2012
On 31 January, the Polish zloty (PLN) traded at 4.22 per EUR, which was 5.5% stronger than the level registered in the previous month. The January gain followed December's 0.9% increase, when the PLN traded at 4.47 per EUR. In annual terms, however, the zloty has lost 7.3% compared to the same month last year. As a result of the monthly appreciation, the zloty returned to the levels last seen in September 2011. The currency continued to appreciate in January amid improving investor confidence and increasing appetite for emerging market assets at the beginning of the year. A stronger zloty may to some extent help to alleviate inflation concerns for Polish policymakers, as December's inflation reached 4.6%, well above the Central bank's target.