Hungary's forint firms; zloty, crown subdued

Reuters

Hungary's forint firms; zloty, crown subdued

2024 7월 17 일, 오전 9:24 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Hungary's forint firms; zloty, crown subdued</title></head><body>

By Boldizsar Gyori

BUDAPEST, July 17 (Reuters) - Hungary's forint outperformed its regional peers on Wednesday, trading near a 6-week high versus the euro hit earlier in the week, while the crown and the zloty were subdued.

The forint EURHUF= was up 0.36%, trading at 390.95 versus the common currency.

A relative calm on the global stage and a weakening dollar helped the forint to firm, a Budapest-based FX trader said.

"Holiday mood kicked in, which adds to a high rate difference that creates an environment for the forint to firm," he said.

The National Bank of Hungary reduced its base rate to 7% last month as expected, and has now cut borrowing costs by 1,100 basis points since May 2023.

Its Deputy Governor said earlier this week that a possible further small reduction in the base rate is an "open question" during next Tuesday's policy meeting.

A high interest rate differential gave a backing to the forint, allowing investors to carry-trade.

Meanwhile, the Polish zloty EURPLN= traded at 4.29 to the euro, down 0.15% on the day.

"The current EUR/PLN level again seems favorable for purchasing our currency, especially with the relatively high EUR/USD," ING BSK said in a note.

"The fundamentals behind the zloty remain unchanged, such as the strong current account balance of payments and the high level of NBP rates, as well as the lack of readiness to change them despite the upcoming Fed and ECB cuts."

Recent comments by Federal Reserve Chair Jerome Powell indicated that interest rate cuts may not be far off, with expectations of a September start. FEDWATCH

The European Central Bank holds its policy meeting on Thursday, but is not expected to adjust policy before September, analysts said.

The Czech crown EURCZK= traded at 25.32, trading sideways.

		CEE MARKETS SNAPSHOT AT 1036 CET
			CURRENCIES
			Latest trade	Previous close	Daily change	Change in 2024

EURCZK=	Czech crown	EURCZK=	25.3250	25.3330	+0.03%	-2.46%
EURHUF=	Hungary forint	EURHUF=	390.9500	392.3500	+0.36%	-1.99%
EURPLN=	Polish zloty	EURPLN=	4.2915	4.2850	-0.15%	+1.23%
EURRON=	Romanian leu	EURRON=	4.9705	4.9699	-0.01%	+0.08%
EURRSD=	Serbian dinar	EURRSD=	116.9200	117.0200	+0.09%	+0.28%
		Note: daily change calculated from 1800 CET

			Latest	Previous close	Daily change	Change in 2024

.PX	Prague	.PX	1598.78	1596.1100	+0.17%	+13.07%
.BUX	Budapest	.BUX	72432.52	72294.66	+0.19%	+19.49%
.WIG20	Warsaw	.WIG20	2443.61	2485.93	-1.70%	+4.29%
.BETI	Bucharest	.BETI	18551.43	18577.54	-0.14%	+20.69%

					Spread vs Bund	Daily change in spread

	Czech Republic
CZ2YT=RR	2-year	CZ2YT=RR	3.5980	-0.0100	+084bps	+0bps
CZ5YT=RR	5-year	CZ5YT=RR	3.6830	-0.0080	+129bps	+1bps
CZ10YT=RR	10-year	CZ10YT=RR	3.8130	-0.0110	+140bps	+1bps
	Poland
PL2YT=RR	2-year	PL2YT=RR	5.0070	-0.0270	+225bps	-2bps
PL5YT=RR	5-year	PL5YT=RR	5.3510	-0.0980	+296bps	-8bps
PL10YT=RR	10-year	PL10YT=RR	5.4890	-0.0750	+307bps	-6bps

		FORWARD RATE AGREEMENTS
			3x6	6x9	9x12	3M interbank
	Czech Rep	CZKFRAPRIBOR=	4.13	3.73	3.54	4.61
	Hungary	HUFFRABUBOR=	6.85	6.52	6.20	6.83
	Poland	PLNFRAWIBOR=	5.80	5.67	5.32	5.86
		Note: FRA quotes are for ask prices
	****************************************************

Reporting by Boldizsar Gyori in Budapest; editing by Christina Fincher and Varun H K

For related news and prices, click on the codes in brackets:
All emerging market news EMRG CEEU CEE/

Spot FX rates
Eastern Europe spot FX EEFX= Middle East spot FX MEFX=
Asia spot FX ASIAFX= Latin America spot FX LATAMFX=

Other news and reports
World central bank news CEN Economic Data Guide ECONGUIDE
Official rates GLOBAL/INT Emerging Diary EMRG/DIARY
Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY

</body></html>