Political Risk Is Noise for Eastern European Currencies: Chart

(Bloomberg) -- Political risk may be alive and kicking, but investors couldn’t seem to care less. While Eastern Europe has seen two new premiers in little more than a month and Poland is being threatened with relegation to the EU’s sin-bin for eroding the rule of law, the region’s currencies are soaring. Implied volatilities on the zloty, the forint and the koruna are all sliding, a sign that traders think that political risk isn’t a headache for the exchange rates.

©2018 Bloomberg L.P.