Polish Zloty Falls on European Debt & Fitch Statement

The Polish zloty tumbled today on the increasing concerns about the European sovereign-debt and as the Fitch Ratings requested the country to decrease its deficit.

The Financial Times Deutschland reported that Eurozone policy makers are pushing Portugal to request aid from the bailout fund. The Fitch Ratings said yesterday that Poland required to cut its deficit to prevent “negative pressure building” on its creditworthiness. The Fitch said that the increase of the country’s general government deficit to 7.9 percent of gross domestic product this year from 7.2 percent in the previous year “weakened the credibility of Poland’s fiscal forecasts”.

USD/PLN jumped from 2.9742 to 3.0559 as of 12:03 GMT, following the advance to 3.0652. Currently the currency pair is extremely volatile.

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