BUDAPEST — The Hungarian forint firmed to
a more than three-week high on Friday while its CEE peers were
little moved as investors eyed a meeting of European energy
ministers later in the day where a cap on Russian gas prices
could be discussed.
The forint was up 0.47% on the day and trading at
395.35 per euro as it was supported by hopes for a deal on EU
funds after the government announced on Monday that it would
create an anti-corruption body.
It was also supported by a drop in gas prices in the past
week, which eases the burden on import-dependent Hungary’s
current account balance and budget, traders and analysts said.
“The forint could keep gaining in today’s quiet trade. I do
not expect much activity from London now, a day after the Queen
died,” an FX trader in Budapest said. “Investors are also
waiting for the result of the EU meeting on Russian gas prices.”
Economists at Erste Investment said Hungary’s plan to curb
gas consumption by a fourth from the start of the heating season
at public institutions could curb the deficit of the budget and
the trade account by some 400 million euros.
EU energy ministers on Friday are set to discuss ways to
tame energy prices, which have surged as Russia has halted most
gas flows to Europe in response to European sanctions after
Russia sent tens of thousands of troops into Ukraine.
The Czech Republic said on Wednesday that it wants to remove
capping Russian gas prices from the agenda of the meeting.
Hungarian Foreign Minister Peter Szijjarto said a price cap
goes against European and Hungarian interests.
Lower gas prices, “which has become the main driver of the
region these days” support all CEE currencies that are now
trading at their strongest since mid-August, ING wrote in a
“Purely based on this relationship, we could see further
appreciation, … In addition, today’s EU meeting could bring a
further drop in gas prices and additional support for the CEE.”
The Polish zloty was unmoved a day after central
bank Governor Adam Glapinski said the bank could hold rates
unchanged next month or opt for a small increase amid concerns
that high borrowing costs could weigh too much on the economy.
“No surprise in yesterday’s event, which … resulted in
another day of stabilization of the zloty against the euro,”
Bank Millennium wrote.
Stocks in the region firmed, with Warsaw leading
gains as it added 3.25%.
CEE SNAPSH AT
MARKETS OT 1032
Latest Previo Daily Change
bid close change in
Note: calculated from 1800
Latest Previo Daily Change
close change in
.PX Prague 1196.6 1172.2 +2.08
1 200 %
.BUX Budapes 41294. 40863. +1.05 -18.58
t 96 94 % %
.WIG20 Warsaw <.wig20> 1 8 % %
.BETI Buchare 11974. 11894. +0.67 -8.32%
st 19 18 %
.SBITO Ljublja <.sbito p na> 1 4 % %
.CRBEX Zagreb <.crbex> 8 3
.BELEX Belgrad <.belex e> %
.SOFIX Sofia <.sofix> %
Yield Yield Spread Daily
(bid) change vs change
3×6 6×9 9×12 3M
Note: are for ask
(Additional reporting by Pawel Florkiewicz in Warsaw; Editing
by Muralikumar Anantharaman)