From October 2000 through March 2001, Polish bonds roared higher, benefiting from cuts in official policy interest rates in response to clear signs of slowing economic activity within the Polish economy. The dollar–Polish zloty exchange rate, which at one time had been as high as 4.75 extended its downward trend, at one point breaking through [...]
Fundamental Deterioration — The Local Currency Becomes Volatile [practice]
From March to mid-June 2001, the Polish zloty continued to appreciate, albeit in an increasingly chaotic and volatile manner. Frequent sell offs would be followed by sharp rallies. Asset managers were more and more aware of the degree of slowdown in the national economy. While this should conversely be good news for fixed income investors [...]