Polish Zloty Drops as Inflation Slows

The Polish zloty weakened today as negative fundamentals, including slowing inflation, spurred speculations that the central bank will cut interest rates yet again.
The Consumer Price Index rose 0.8 percent in April from a year ago, the slowest rate of growth since June 2006. It was the seventh straight month of slowing inflation. The current-account deficit was at €200 million in March, more than double the analysts forecast. The National Bank of Poland unexpectedly cut interest rates last week and the unfavorable fundamentals suggest that it may do so again. USD/PLN went up from 3.2425 to 3.2539 as of 8:10 GMT today. If you have any questions, comments or opinions regarding the Polish Zloty, feel free to post them using the commentary form below.