Forint weakens ahead of Hungary's interest rate decision
WARSAW, Aug 26 (Reuters) -The forint slipped on Monday, ahead of Hungary's interest rate decision this week, while the Polish zloty gave back some of its gains from Friday.
Central European currencies were among the beneficiaries of a weakening dollar on Friday after U.S. Federal Reserve Chairman Jerome Powell gave the green light to easing the cost of credit in September.
The Hungarian central bank is expected to pause its easing cycle on Tuesday after 15 consecutive rate cuts, keeping its base rate at 6.75%, a Reuters poll showed, with a few outlying forecasts pointing to further easing.
By 0932 GMT the forint EURHUF= was down 0.4% against the euro at 395.10.
"The forint is correcting today following Friday's firming after data and Powell's speech from the U.S.," a Budapest-based trader said.
"It is underperforming the region due to the uncertainty that tomorrow's rate decision brings."
In Poland the zloty EURPLN= slipped 0.2% to 4.2780 per euro, remaining in the firm range it has traded in since mid-August.
Two Warsaw-based currency dealers brushed off Monday's slight easing as insignificant, saying that Powell's comments would have a positive impact on the region, including the zloty.
According to Bank Pekao, "the strength of the Polish currency at the moment is still the interest rate differential and the transfer of (EU) funds."
Poland's central bank has kept rates steady since October, citing uncertainty.
Polish policymakers may discuss changing monetary policy before 2026, Poland's central bank governor was cited as saying last week, in a turn from earlier hawkish statements.
Poland's statistics office will publish detailed second quarter economic output data and a flash August consumer inflation reading towards the end of this week.
The Czech crown EURCZK= was steady at 25.04 per euro.
CEE MARKETS | SNAPSHOT | AT 1132 CET | |||
CURRENCIES | |||||
Latest | Previous | Daily | Change | ||
trade | close | change | in 2024 | ||
Czech crown | EURCZK= | 25.0400 | 25.0400 | +0.00% | -1.35% |
Hungary forint | EURHUF= | 395.1000 | 393.3900 | -0.43% | -3.02% |
Polish zloty | EURPLN= | 4.2780 | 4.2683 | -0.23% | +1.55% |
Romanian leu | EURRON= | 4.9755 | 4.9750 | -0.01% | -0.02% |
Serbian dinar | EURRSD= | 117.0000 | 117.0400 | +0.03% | +0.21% |
Note: daily change | calculated from | 1800 CET | |||
Latest | Previous | Daily | Change | ||
close | change | in 2024 | |||
Prague | .PX | 1575.16 | 1579.0100 | -0.24% | +11.40% |
Budapest | .BUX | 73290.91 | 72949.64 | +0.47% | +20.90% |
Warsaw | .WIG20 | 2401.33 | 2401.25 | +0.00% | +2.49% |
Bucharest | .BETI | 18364.52 | 18431.63 | -0.36% | +19.47% |
Spread | Daily | ||||
vs Bund | change in | ||||
Czech Republic | spread | ||||
2-year | CZ2YT=RR | 3.3320 | -0.0180 | +095bps | -3bps |
5-year | CZ5YT=RR | 3.4600 | -0.0080 | +131bps | -3bps |
10-year | CZ10YT=RR | 3.7200 | -0.0200 | +148bps | -4bps |
Poland | |||||
2-year | PL2YT=RR | 4.8620 | 0.0040 | +248bps | -1bps |
5-year | PL5YT=RR | 5.0770 | 0.0030 | +293bps | -2bps |
10-year | PL10YT=RR | 5.2840 | -0.0530 | +304bps | -7bps |
FORWARD | |||||
3x6 | 6x9 | 9x12 | 3M interbank | ||
Czech Rep | CZKFRAPRIBOR= | 3.92 | 3.54 | 3.29 | 4.40 |
Hungary | HUFFRABUBOR= | 6.63 | 6.23 | 5.83 | 6.53 |
Poland | PLNFRAWIBOR= | 5.71 | 5.37 | 4.89 | 5.85 |
Note: FRA quotes | are for ask prices | ||||
************************************************************** | |||||
Reporting by Karol Badohal in Warsaw and Boldizsar Gyori in Budapest; Editing by Susan Fenton
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