U.S. rates, strong economies boost European currencies

Published: 9 January 2006 y., Monday

Central European currencies have reached levels close to all-time records against the euro in recent days, boosted by strong economic performance and a rush by international investors to the region.

On Thursday morning, the Polish zloty was trading at just under 3.80 to the euro, its strongest rate since 2002.

By Friday, the zloty had eased off slightly and stood at around 3.81 to the euro.

The Czech koruna closed Friday at 28.90 to the euro, near its record.

Slovak markets were closed Friday because of a Roman Catholic religious holiday, but the koruna ended the day's trading on Thursday at 37.65, also near its record.

Analysts attribute the rise in the currencies to central Europe's strong economies and to investors ditching the dollar after the U.S. Federal Reserve hinted at the beginning of the year that transatlantic interest rates were as high as they were going to go for a while.

Experts have predicted GDP growth of 4.3 percent, inflation at 1.5 percent and a 3.2-percent budget deficit in Poland in 2006.

The Warsaw stock exchange climbed to new highs in the first week of 2006, with blue chips showing gains of 5.6 percent.

Polish interest rates are higher than in eurozone countries, and investors are fighting to get their hands on Polish bonds.

Šaltinis: AFP
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Fortis Bank Nederland and ABN AMRO Bank Nederland - Commission grants extension of deadline for implementation of remedies

The European Commission has decided to grant an extension of the deadline for the divestment of Fortis' corporate banking business, consisting of Hollandsche Bank Unie N.V. (HBU), two corporate client departments, 13 "Advieskantoren" and ABN AMRO's Dutch factoring activities to Deutsche Bank. more »

MEPs back support for milk sector

MEPs will vote on an emergency plan to help the crisis-stricken sector dairy sector on Thursday after the Agriculture Committee approved the Commission's proposal on Monday evening in Strasbourg. more »

EBRD invests in leading retailer in Montenegro

The EBRD is boosting competition in the Montenegrin retail sector with a loan to expand the supermarket network of one of the leading retailers in the country. more »

Steve Ballmer on SharePoint: A Great Tool for Pumping Up Productivity

Redmond, Wash. — Oct. 16, 2009— On Oct. 19, Microsoft CEO Steve Ballmer heads to the sold-out Microsoft sharepoint Conference in Las Vegas where he will address more than 7,000 sharepoint customers, partners and developers. more »

Charting a course for maritime policy and sustainable fishing

Proposals tabled for collaboration on sea surveillance, bigger EU role in global maritime affairs and sustainable fishing. more »

EBRD loan helps Noble Group take off in Ukraine

$50 million financing package for agricultural commodities operator. more »

Norwegians move sheet-metal production to Lithuania

Seeking to increase sheet-metal production volumes, Stansefabrikken decided to move all company’s production from Lillesand (Norway) to Stansefabrikken’s successfully operating factories in Lithuania. more »

The Baltic Sea Region: The best place to work and do business

The European Economic and Social Committee (EESC) and the European Commission Representation in Finland jointly organise a conference in Helsinki on 22 and 23 October on "The Baltic Sea Region: the best place to work and do business". more »

Closer look to reality or hard landing of Baltic tiger

Why did economy rise drastically turn into painful decline and what price will every of us have to pay for that? more »

EBRD revies down 2009 economic forecasts, sees fragile recovery in 2010

The economies of central and eastern Europe are expected to contract by an average of 6.3 per cent in 2009 following steep output declines in the first half of the year. more »