CEE MARKETS-Zloty reduces losses on c.bank, finmin support
Band Alan Charlish
WARSAW, March 2 (Reuters) – The Polish zloty EURPLN= cut losses on Wednesday after the central bank and finance ministry moved to back a currency that fell to a 13-year low in a sell-off sparked by Russia’s invasion of Ukraine .
The National Bank of Poland (NBP) said it sold foreign currency for zlotys for the second day in a row, while the Finance Ministry said it would exchange most foreign currency funds in the market instead than at the central bank.
Russia’s attack and resulting round of sanctions against Moscow had sent the zloty to its weakest level since February 2009, while the Hungarian forint EURHUF= reached a new record low.
“The NBP and the Ministry of Finance will try to do whatever it takes to strengthen the zloty to fight inflation,” said Mateusz Sutowicz, financial market analyst at Bank Millennium.
At 15:34 GMT, the zloty was 0.49% softer on the day against the euro at 4.77. It had previously been as low as 4.8335.
The Hungarian forint fell 1.16% against the euro to 381.50. The Czech crown EURCZK= slipped 1.12% to 25.72, while the Romanian leu EURRON= was little changed at 4.9485.
The National Bank of Hungary said on Tuesday it was ready to intervene “at any time” to ensure the stability of local financial markets, while the central bank of Poland said it was ready to react to excessive movements in the currency. .
Ahead of the NBP announcement on Wednesday, a Warsaw-based trader told Reuters the central bank had been active in the market. “We have the central bank hitting the offer from time to time,” the trader said. “I wouldn’t call it a very big intervention, but they call sometimes.”
Stocks were higher in Budapest and Warsaw, with Polish coking coal producer JSW JSW.WA up 23% due to potential sanctions on imported coal from Russia.
On Tuesday, Polish Prime Minister Mateusz Morawiecki said Poland wanted the toughest possible sanctions introduced against Russia, including a coal import ban.
At 4:34 p.m. CET
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(Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague, Gergely Szakacs in Budapest; Editing by Aditya Soni World central bank news CEN Guide to economic data ECOGUIDE
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