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PRAGUE — Hungary’s forint slipped on
Monday and the Polish zloty also eased as a stronger US dollar
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pushed central Europe’s currencies lower.
Following several days of gains, currencies mostly pulled
back as attention turned to a Hungarian central bank meeting on
Tuesday after its policymakers sought to buck up the forint this
month when it fell to record lows.
The forint has gained more than 5% since Hungary’s central
bank announced measures like daily deposit tenders on Oct. 14.
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The bank (MNB) is expected to keep its base interest rate
unchanged at 13% as it seeks to end a more than year-long cycle
of hikes.
“We warned after that meeting that there was a big risk that
the MNB was acting prematurely,” Capital Economics said.
“So far, (new) measures have had the intended effect of
pushing up short-term money market rates and stemming the
downward pressure on the currency.
“As a result, we expect the MNB will leave rates on hold and
reaffirm its commitment to its new tools to limit excessive
falls in the forint.”
The forint had dropped 0.7% to 413.0 to the euro
by 0903 GMT, but stayed well off all-time lows above 434.
The zloty fell 0.4%, remaining on the strong side
of the 4.80 per euro level breached earlier this month. The
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Czech crown was steady at 24.49 per euro, continuing
to find support in a Czech National Bank mandate since May to
intervene in markets to prevent excessive swings.
Stock markets in central Europe were mixed on Monday, with
Warsaw mainly showing gains.
The region’s central banks have sought to cool rate hikes
undertaken since last year as they battle soaring inflation that
has reached double-digit rates.
With high prices and surging electricity bills, economies
are slowing quickly. A monthly Czech statistics office survey on
Monday showed consumer confidence touching a fresh-low.
Markets were also watching global central banks, which have
quickly moved to lift their own rates.
“Ahead of us is an exciting week on the financial markets,
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with the meeting of the European Central Bank, preliminary GDP
and inflation readings from Germany and the US at the fore,”
Bank Millennium in Warsaw said.
“We believe that the high significance of foreign data may –
after two weeks of relative peace for the Euro/dollar – be a
source of indirect volatility for the Polish currency.”
CEE SNAPSHO AT
MARKETS T 1103
CET
CURRENC
IES
Latest Preview Daily Change
s
bid close change in 2022
EURCZK Czech
EURHUF Hungary
EURPLN Polish
EURRON Romanian
EURHRK Croatian
EURRSD Serbian
Note: calcula 1800
daily ted CET
change from
Latest Preview Daily Change
s
close change in 2022
.PX Prague 1163.93 1164.33 -0.03% #VALUE!
00
.BUX Budapest 40060.4 40431.9 -0.92% -21.02%
7 7
.WIG20 Warsaw <.wig20>
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.BETI Buchares 10921.8 10875.6 +0.42% -16.38%
t 3 1
.SBITO Ljubljan <.sbito p a>
.CRBEX Zagreb <.crbex>
.BELEX Belgrade <.belex>
.SOFIX Sofia <.sofix>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year
CZ5YT= 5-year
CZ10YT
Poland
PL2YT= 2-year
PL5YT= 5-year
PL10YT
FORWARD
3×6 6×9 9×12 3M
interba
nk
Czech
Hungary
Poland
Note: are for
FRA ask
quotes prices
************************************
****************************
(Reporting by Jason Hovet in Prague, Gergely Szakacs in
Budapest, and Alan Charlish in Warsaw; Editing by Mike Harrison)
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