Polish Zloty Declined After Germany Applied Bans of Short Selling

The Polish zloty was weakened today as the concerns about the outcome of the debt crisis in the European Union increased after Germany banned short selling.

Naked short sales for the 10 banks and insurers as well as short sales of the Euro-zone government bonds were banned. The ban caused concern that the investors won’t be able to hedge the European holdings, weakening the currencies in the Central and Eastern Europe.

USD/PLN traded at 3.3383 up from its opening level of 3.3239.

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