By Krystof Chamonikolas - 2012-05-24T09:37:34Z

Poland’s zloty snapped two days of losses after the Finance Ministry said it will buy the currency in the market this year.

The zloty appreciated 0.7 percent to 4.3561 per euro by 11:15 a.m. in Warsaw, paring its decline in May to 4.2 percent. It weakened 1.5 percent in the previous two sessions.

Poland expects to sell the equivalent of 11 billion euros ($13.8 billion) of foreign currencies, about the same amount it exchanged in 2011, Deputy Finance Minister Dominik Radziwill said yesterday in Sopot, northern Poland. Recent zloty losses are a by-product of the euro’s weakening, he said.

Radziwill “is reminding the market that the ministry will be there in the background, so don’t sell the zloty too aggressively,” Timothy Ash, London-based chief emerging-markets strategist at Royal Bank of Scotland Group Plc, said in e-mailed comments. “This is a normal process in Poland and does not reflect a new, more aggressive policy towards intervention.”

Polish government bonds gained today, lowering five-year generic yields compiled by Bloomberg by four basis points, or 0.04 percentage point, to 5.075 percent. The yield jumped 23 points in May through yesterday to an almost four-month high.

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