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

Doing Business 2010: Governments Set New Record in Business Regulation Reform

A record 131 economies around the globe reformed business regulation in 2008/09, according to the IFC–World Bank Doing Business 2010 report. more »

Haiti: WB Approves US$5 Million Grant for Electricity Services

The World Bank’s Board of Directors today approved a US$5 million grant to improve the quality of electricity services in Haiti and strengthen the financial and operational performance of Electricité d’Haïti, the public electricity utility. more »

Families Becoming Farmers in Tajikistan

Firuza Ziyoeva, a 42-year old mother of five, lacks any sustainable income for her family – her husband is unable to work due to disabilities and their children are all young. more »

IMF Managing Director Dominique Strauss-Kahn Welcomes Singapore’s Commitment of Additional Financial Support for the IMF

The Managing Director of the International Monetary Fund (IMF), Mr. Dominique Strauss-Kahn, made the following statement today regarding Singapore’s commitment to increase fourfold its contribution to the Fund’s New Arrangements to Borrow (NAB) by US$1.5 billion, to a total of US$2 billion. more »

Foreign trade of Lithuania in I half-year 2009

Statistics Lithuania reports that, based on non-final data obtained from customs declarations and Intrastat reporting data, exports in I half-year 2009 made LTL 19 billion, while imports – LTL 21.2 billion. more »

AB Bank SNORAS is the first who suggests certificates of deposits in Lithuania

Since 7 September 2009 AB Bank SNORAS for residents and economy subjects begins to distribute a new savings product - certificates of deposits. more »

Africa's chief development banker urges regional cooperation

“We are 53 diverse countries differently affected by the crisis, 1 billion people that cannot be ignored”. That was the stark message to Members of Parliament's Development Committee from Donald Kaberuka, the head of Africa's Development Bank at a hearing on 3 September in Brussels. more »

Spain: EIB provides EUR 450 million for air traffic control facilities

The European Investment Bank has granted a EUR 450 million loan to AENA (Aeropuertos Españoles y Navegación Aérea) for upgrading and expanding Spain’s air traffic control facilities in order to optimise their overall efficiency and ensure that they comply with international regulations. more »

Prices for industrial production in August 2009 increased by 0.9 per cent

Statistics Lithuania informs that in August 2009, against July, prices for total industrial production sold increased by 0.9 per cent. more »

U.S. jobless rate at 26-yr peak

Despite signs the near two-year U.S. recession may be over - Americans are still finding it hard to get a job. more »