CEE MARKETS-Zloty continues to struggle on policy divergence

 CEE MARKETS-Zloty continues to struggle on policy divergence

By Gergely Szakacs BUDAPEST, Sept 15 (Reuters) – The Polish zloty eased in early Wednesday trade versus the euro, continuing to lag its regional peers, pressured by weak Chinese data and monetary policy divergence within central Europe. At 0726 GMT, the zloty was down 0.08% versus the euro, while the Czech crown was flat and the Hungarian forint was marginally stronger. Prague stocks climbed to a fresh 11-year high in morning trade, bolstered by gains in banking stocks after the central bank approved some scaled back dividend payouts and a continuing rise in utility CEZ shares due to an increase in power prices. “Morning releases of weaker-than-expected Chinese data deteriorate market sentiment, increasing appetite for safer assets,” Bank Millennium said in a note. “Therefore, the U.S. dollar may gain, while the zloty and other currencies in the region will be under depreciation pressure, hence the EUR/PLN exchange rate may move…

Read full article…finance.yahoo.com