Brexit jitters push Polish zloty volatility gauge to 3-yr high

LONDON: A key gauge of expected Polish zloty volatility against the euro hit a three-year high on Tuesday, as tensions mounted over the June 23 British vote on whether to quit the European Union.

Large numbers of Poles live in Britain, and although Polish direct exports to Britain are small compared with trade with Germany, a Brexit could cause major jitters in Europe's smaller currency markets, analysts warn.

One-month implied volatilities for the zloty hit their highest since June 2013 as they topped 10 percent. The Hungarian equivalent rose too, hitting almost 7.5 percent.

The zloty/dollar implied volatilities hit a 1-year high, meanwhile, at 15.1 percent.