February 1, 2014 / 11:16 AM / in 4 years

UPDATE 1-Polish PM Tusk sees no need to intervene to support zloty

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WARSAW, Feb 1 (Reuters) - Poland’s Prime Minister Donald Tusk said on Saturday he saw no need to intervene to support the zloty as its recent weakening is related to global risk-aversion and is insignificant compared with other emerging markets’ currencies.

“If the zloty follows the global mood, then interventions are ineffective. There is no need for a reaction,” Tusk told a news conference.

“When we compare the zloty situation to other emerging markets it is obvious that the zloty’s weakening is thankfully much smaller that what is going on with other currencies,” he said.

The currency fell to a five-month low on Friday.

Poland’s central bank intervened to support the zloty last June when it traded at about 4.3 zlotys to the euro, and the bank has repeatedly said it is ready to intervene to curb excessive volatility. At 1057 GMT on Saturday zloty was trading at 4.2375 versus euro.

Poland’s is seen as one of the most resilient economies in the region, but the zloty has been hit by the global sell-off in emerging assets.

The former communist country has posted nearly two decades of uninterrupted growth but its economy slowed sharply last year and growth fell to near zero in the first quarter of 2013. It has been gathering pace since then. ($1 = 3.1523 Polish zlotys) (Reporting by Marcin Goclowski; Editing by Hugh Lawson)

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