The zloty is expected to recover some ground after Polish elections on Sunday and Central European currencies should gain over the next year although they remain at risk from deepening turmoil in the eurozone, a Reuters poll showed on Thursday.
The poll of 38 analysts conducted between October 3 and 5 showed currencies across the region gaining despite a sell-off due to worsening global sentiment that has driven poorer performance than earlier forecasts in recent months.
Respondents said that the resolving of the risk of an immediate Greek default could prove the catalyst for gains in currencies that look fundamentally undervalued given relatively healthy levels of growth.
But scepticism over policymakers ability to solve the broader eurozone crisis, as well as concerns over stuttering global growth may delay meaningful gains until well into 2012. "We do not expect Greece to default within the next couple of months, although the likelihood of a default in general has certainly increased," said Thu Lan Nguyen of Commerzbank in Frankfurt am Main. "As soon as the troika pays out the next credit tranche to Greece, we would expect EM currencies to correct somewhat.