Band Anita Komuves

BUDAPEST, June 21 (Reuters) – Central European currencies and stocks rose on Tuesday as the dollar eased and risk appetite returned to markets after last week’s turmoil when investors worried about aggressive rises interest rates and the risks of a global recession.

“CEEC currencies strengthened today… The strengthening moves coincided with a slightly weaker US dollar and an easing in risk sentiment in global markets,” Erste Group wrote in a client note.

Hungarian forint EURHUF= added 0.27% and traded at 396.00 per euro, moving further away from the all-time low of 403 hit last week.

“We are seeing a bit of a correction and a return to risk appetite after last week’s turmoil, but we’ll have to see if this mood continues after US markets open later today,” he said. a forex trader in Budapest.

US markets were closed Monday for a public holiday.

The Hungarian central bank will hold a FX swap tender providing euro liquidity later today.

The bank announced in May that it would hold a total of four foreign exchange swap tenders providing liquidity in euros and two auctions of short-term bills in June, in order to strengthen the efficiency of monetary transmission.

The Czech crown EURCZK= was stable ahead of a meeting of the Czech National Bank on Wednesday. Analysts polled by Reuters expect the meeting to result in a 100 basis point or 125 basis point hike in the main two-week repo rate, now at 5.75%.

This will be the bank’s last meeting before new Governor Ales Michl takes over. Michl has consistently voted against rate hikes during the central bank’s one-year tightening cycle, which raised the policy rate by a total of 550 basis points.

However, his promise not to raise rates again will be immediately tested by soaring inflation and a hawkish turn by major central banks.

Elsewhere, the Polish zloty EURPLN= added 0.22% and traded at 4.6390 per euro.

“The zloty continues to strengthen, benefiting from local factors, i.e. rising expectations for higher interest rates in Poland…and another set of likely good data from the domestic economy,” wrote Bank Millennium.

Equities in the region were also higher, following European peers, with the Warsaw index .WIG20 leading the gains by adding 1.69%.

CEE MARKETS

INSTANTANEOUS

At 10:17 a.m. CET

CURRENCIES

Last

Previous

Daily

To change

offer

close

change

in 2022

Czech koruna

EURCZK=

24.6890

24.6900

+0.00%

+0.74%

Hungarian forint

EURHUF=

396.0000

397.0500

+0.27%

-6.72%

polish zloty

EURPLN=

4.6390

4.6510

+0.26%

-1.03%

lei in Romanian

EURRON=

4.9475

4.9450

-0.05%

+0.01%

Croatian kuna

EURHRK=

7.5140

7.5165

+0.03%

+0.05%

Serbian dinar

EURRSD=

117.3500

117.4500

+0.09%

+0.20%

Note: daily change

calculated from

1800 CET

Last

Previous

Daily

To change

close

change

in 2022

prague

.PX

1323.62

1308.9000

+1.12%

Budapest

.BUX

40197.72

39691.12

+1.28%

-20.75%

Warsaw

.WIG20

1708.20

1679.89

+1.69%

-24.65%

Bucharest

.BETI

12406.12

12325.80

+0.65%

-5.02%

Ljubljana

.SBITOP

1143.68

1150.71

-0.61%

-8.90%

Zagreb

.CRBEX

1992.68

1993.82

-0.06%

-4.17%

Belgrade

.BELEX15

834.40

836.00

-0.19%

+1.66%

Sofia

.SOFIX

612.41

612.77

-0.06%

-3.66%

Yield

Yield

Spread

Daily

(offer)

change

vs. Bunds

to change

Czech Republic

spread

2 years

CZ2YT=RR

6.6640

-0.1730

+553bps

-22bps

5 years

CZ5YT=RR

6.2340

-0.0230

+469bps

-10bps

10 years

CZ10YT=RR

5.7680

0.0510

+400bps

-6bps

Poland

2 years

PL2YT=RR

8.3900

0.0380

+725 basis points

-1bps

5 years

PL5YT=RR

8.5850

0.1340

+704 basis points

+6 basis points

10 years

PL10YT=RR

8.1670

0.0230

+640 basis points

-8bps

FORWARD

3×6

6×9

9×12

3M interbank

Czech Republic

CZKFRAPRIBOUR=

7.77

7.98

7.91

6.57

Hungary

OYSTERBUBOR=

9.50

10.09

10.19

7.63

Poland

PLNFRAWIBOR=

8.54

8.75

8.75

6.91

Note: ENG Quotes

are for asking prices

************************************************** **** ***********

(Reporting by Anita Komuves; Additional reporting by Alan Charlish in Warsaw; Editing by Bradley Perrett)

((komuves.anita@thomsonreuters.com)(+36 70 795 8815))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.