Forint weakens ahead of Hungary's interest rate decision

Reuters

Forint weakens ahead of Hungary's interest rate decision

2024 8월 26 일, 오전 10:19 GMT

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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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