MARKETS CEE-Forint, krona eases after strong gains in early 2022
Band Anita Komuves and Jason Hovet
BUDAPEST/PRAGUE, January 13 (Reuters) – The Czech koruna and Hungarian forint eased on Thursday as some investors posted profits after strong gains in early 2022 that were fueled by expectations of a central bank rate hike.
The krone has gained more than 2% this year, while the forint has gained nearly 4%, both supported by higher interest rates as central banks battle rising inflation.
The Czech crown EURCZK= fell 0.16% and traded at 24.375 against the common currency on Thursday after firming to its highest level since September 2011 earlier in the day.
The krone strengthened at this level after Wednesday’s CPI data bolstered expectations of further rate hikes to come. Headline inflation hit its highest level since September 2008.
The Czech National Bank said it could not rule out a double-digit rise early this year, and several central bankers this week hinted at further rising interest rates.
The Hungarian Forint EURHUF= slipped 0.15% and traded at 355.52 per euro after strengthening to a nearly four-month high in the previous session.
“When the forint touched 355, some sellers appeared, so that’s the level where the firming will stop for now,” said a Budapest-based FX trader.
On Thursday, the central bank left its one-week deposit rate unchanged at 4% in a weekly tender for the second straight week.
The bank uses the one-week deposit rate to deal with short-term market volatility and it is above its base rate of 2.4%. The next monthly rate-setting meeting will take place on January 25.
Elsewhere, the Romanian leu and the Polish zloty EURPLN=, EURRON= were a retouch, each adding 0.01%.
“The zloty…in our view, could soon have problems with further strengthening given the arguments that are gradually fading in the short term (rising interest rates) and the recurring risks (political risk in the relations with the European Union)” Bank Millennium wrote.
Shares in the region were mixed, with Budapest shedding 0.63% Prague .PX down 0.18% and Warsaw up 0.40%. Actions in Bucharest .BETI added 0.51%.
CEE MARKETS
INSTANTANEOUS
At 11:25 a.m. CET
CURRENCIES
Last
Previous
Daily
Change
bid
Close
cash
in 2022
EURCZK=
czech koruna
EURCZK=
24.3750
24.3350
-0.16%
+2.04%
EURHUF=
Hungarian forint
EURHUF=
355.5200
355.0000
-0.15%
+3.90%
EURPLN=
polish zloty
EURPLN=
4.5275
4.5280
+0.01%
+1.40%
EURRON=
leu in Romanian
EURRON=
4.9435
4.9440
+0.01%
+ 0.10%
EURHRK=
Croatian kuna
EURHRK=
7.5250
7.5255
+0.01%
-0.10%
EURRSD=
Serbian dinar
EURRSD=
117.5500
117.6000
+ 0.04%
+0.03%
Note: daily change
calculated from
1800 CET
Last
Previous
Daily
Change
Close
cash
in 2022
.PX
prague
.PX
1440.18
1442.8300
-0.18%
.BUX
Budapest
.BUX
54062.87
54405.84
-0.63%
+6.59%
.WIG20
Warsaw
.WIG20
2420.67
2411.11
+ 0.40%
+6.78%
.BETI
Bucharest
.BETI
13516.29
13447.48
+0.51%
+3.48%
.SBITOP
Ljubljana
.SBITOP
1309.64
1306.91
+0.21%
+4.31%
.CRBEX
Zagreb
.CRBEX
2161.60
2157.58
+ 0.19%
+ 3.96%
.BELEX15
Belgrade
.BELEX15
822.77
826.04
-0.40%
+ 0.24%
.SOFIX
Sofia
.SOFIX
648.44
647.06
+0.21%
+2.01%
Yield
Yield
propagated
Daily
(bid)
cash
vs. Bunds
change
Czech Republic
spread
CZ2YT=RR
2 years
CZ2YT=RR
3.9480
0.0290
+454bps
+2 base points
CZ5YT=RR
5 years
CZ5YT=RR
3.5480
-0.0110
+392 basis points
-3bps
CZ10YT=RR
10 years
CZ10YT=RR
3.2380
-0.0320
+329bps
-4bps
Poland
PL2YT=RR
2 years
PL2YT=RR
3.4180
0.0670
+401 basis points
+6 basis points
PL5YT=RR
5 years
PL5YT=RR
3.9300
-0.0250
+430 basis points
-4bps
PL10YT=RR
10 years
PL10YT=RR
4.0610
0.0390
+411 basis points
+3 basis points
CHEEKY
3×6
6×9
9×12
3M interbank
Czech Republic
CZKFRAPRIBOUR=
4.95
4.93
4.71
4.18
Hungary
OYSTERBUBOR=
4.79
4.95
4.93
4.22
Poland
PLNFRAWIBOR=
3.96
4.13
4.07
2.74
Note: ENG Quotes
are for asking prices
************************************************** *********************
(Reporting by Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Amy Caren Daniel)
((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.