The Polish zloty pared its recent gains against the US dollar on Wednesday morning after the National Bank of Poland decided to reduce the key policy rate by 0.25 percentage points to a record low of 3.75 percent. The Poland's currency that fell to a 5-day low of 3.4207 against the buck early in the European session bounced back and hit as high as 3.3654 before losing ground in early New York deals. The dollar-zloty pair, which closed yesterday's New York trading at 3.3655, is currently worth 3.3914.

The central bank decision came in line with economists' expectations and will be effective from March 26. In February, the central bank cut interest rate by 25 basis points to 4%. The Lombard rate was lowered to 5.25%, the deposit rate to 2.25% and the re-discount rate to 4%.

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