BELGRADE: Poland's zloty hovered around 15-month lows against the dollar, little changed from Thursday, when minutes of October's central bank meeting showed bank policymakers were inclined to cut interest rates quickly and deeply in coming months.
Central and Eastern European currencies were stable against the euro, which gained support from data showing euro zone business growth has picked up unexpectedly this month.
Markets will be watching a meeting in Warsaw where David Lipton, the first deputy director at the International Monetary Fund, is meeting the central bank governors of Poland, Romania, Slovenia and Croatia, among others, on Friday.
In Poland, minutes of the central bank's October meeting released on Thursday said a majority of the bank's Monetary Policy Council thought further cuts in interest rates "should be rather quick and significant".
Poland cut interest rates 50 basis points this month, more than expected. The central bank policymakers also signalled more cuts are likely as the euro zone's slump and the Ukraine crisis constrain economic growth.
"The idea of upfront cuts suggests a more than even chance of 25bps rate cut on 5 Nov. We think such a move will be largely market neutral (within range of priced-in outcomes)," Commerzbank said in a daily note.
Diverging outlooks for monetary policy in the United States, where it is expected to tighten in 2015, and in much of Europe, where looser monetary policy is likely, have pushed the dollar up against the zloty and its regional peers.
The zloty has lost more than 9 percent against the dollar since early July. Hungary's forint lost about 7 percent in the same period, the Czech crown 9 percent and the Romanian leu about 8 percent.
The zloty was bid at 3.396 to the dollar by 0842 GMT, down 0.06 percent. Thursday's 15-month low was 3.3598.
Polish 10-year bond yields, which are close to record lows, fell slightly after the sales data.
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