World Economy

Zloty Weakens Regional Currencies

Zloty Weakens Regional CurrenciesZloty Weakens Regional Currencies

The Polish zloty led a weakening of most Central European currencies on Monday after Poland and the Czech Republic released weaker than expected manufacturing figures, Business Recorder reported. Analysts said the risk of a slowdown in economic activity and a rise in budget deficits was growing in the region, while inflation remains persistently low. The zloty eased 0.2% to 4.38 against the euro. Poland’s April manufacturing Purchasing Managers’ Index was 51, below analysts’ forecast of 53.2 and the Czech index at 53.6 was below expectations for 54.3. Polish government bonds were flat or firmed slightly, with the 5-year paper trading at a yield of 2.25%, down 2 basis points.