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Zloty Fluctuates, Gov't Extends VAT Exemption For Food

PLN

EUR/PLN continues to oscillate around neutral levels and last changes hands at PLN4.4346, with familiar technical levels intact.

  • USD/PLN trades at PLN4.0640, down 109 pips on the session. Bears look for losses past PLN4.0215, which limited losses on Jun 22.
  • POLGBs consolidate earlier gains and last trade 7.9-9.0bp richer across the curve. The Finance Ministry announced that it will sell PLN4-7bn worth of OK1025, PS0728, WZ1128, DS1033 and WS0447 bonds on June 28.
  • Government spokesman Piotr Muller confirmed that the zero VAT rate on food items will be extended through the end of the year. The measure was due to expire at the end of this month.

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