The Polish Zloty drifted higher against the U.S. dollar in European deals on Wednesday, as Polish bonds fell on the ECB taper rumors, pushing yields up.

There were reports about the European Central Bank probably winding down its $90-billion monthly bond purchases ahead of schedule, but the central bank subsequently denied that the governing council had discussed the subject.

The Polish Central Bank decided to keep interest unchanged at a record low of 1.5 percent. The decision was in line with expectations.

The Zloty climbed to a 2-day high of 3.8260 against the greenback, compared to Tuesday's closing value of 3.8446.The next possible resistance for the Zloty is seen around the 3.6 mark.

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