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Forint falls to 18-month low, passing big barrier



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Changes dateline, updates with forint low, trader quote, Polish rate decision

BUDAPEST, Oct 2 (Reuters) -The Hungarian forint fell to its weakest against the euro in 18 months on Wednesday as tensions in the Middle East made investors risk-averse, hitting central Europe's currencies.

The zloty, the best performer in the region this year, also eased as the Polish central bank left its base rate unchanged, as expected, with inflation inching upward.

In Hungary, the forint EURHUF= fell past the psychological level of 400 and traded down 0.6% at 400.45 per euro at 1328 GMT.

"There is a general negative mood in markets due to what is happening in the Middle East, and investors will watch if it escalates further. Global events and the strength of the dollar determine everything now," an FX trader in Budapest said.

"And the forint is always the weakest link in central Europe."

The dollar held on to its biggest gains in a week on Wednesday after an Iranian missile attack on Israel.

Elsewhere, the Czech crown EURCZK= was 0.3% lower to the euro at 25.364 to the euro, sitting around lows from early August.

Falling interest rates in Hungary and the Czech Republic have put pressure on those countries' currencies, while the zloty has been supported as the Polish central bank paused rate cuts for the past year.

The zloty is still within sight of multi-year highs hit earlier this year.

The zloty EURPLN= was 0.1% weaker at 4.296 against the euro, nearing the psychological 4.30 level it has remained below since mid-September.



CEE MARKETS

SNAPSHOT

AT 1528 CET





CURRENCIES






Latest

Previous

Daily

Change



trade

close

change

in 2024

Czech crown

EURCZK=

25.3640

25.2870

-0.30%

-2.61%

Hungary forint

EURHUF=

400.4500

397.9000

-0.64%

-4.31%

Polish zloty

EURPLN=

4.2960

4.2900

-0.14%

+1.13%

Romanian leu

EURRON=

4.9765

4.9759

-0.01%

-0.04%

Serbian dinar

EURRSD=

116.9800

117.0300

+0.04%

+0.23%

Note: daily change

calculated from


1800 CET










Latest

Previous

Daily

Change




close

change

in 2024

Prague

.PX

1597.70

1604.5300

-0.43%

+12.99%

Budapest

.BUX

73148.81

74189.72

-1.40%

+20.67%

Warsaw

.WIG20

2319.40

2315.86

+0.15%

-1.01%

Bucharest

.BETI

17448.31

17568.14

-0.68%

+13.51%











Spread

Daily





vs Bund

change in

Czech Republic





spread

2-year

CZ2YT=RR

3.2090

0.0160

+115bps

-1bps

5-year

CZ5YT=RR

3.3300

-0.0130

+139bps

-7bps

10-year

CZ10YT=RR

3.7340

0.0580

+162bps

-1bps

Poland






2-year

PL2YT=RR

4.7790

-0.0770

+272bps

-11bps

5-year

PL5YT=RR

4.9940

0.0720

+305bps

+2bps

10-year

PL10YT=RR

5.3190

0.0150

+321bps

-5bps








FORWARD RATE AGREEMENTS






3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

3.67

3.29

3.03

4.20

Hungary

HUFFRABUBOR=

5.99

5.67

5.21

6.30

Poland

PLNFRAWIBOR=

5.77

5.47

4.82

5.84

Note: FRA quotes

are for ask prices




**************************************************************












Reporting by Karol Badohal in Warsaw, Jason Hovet in Prague and Anita Komuves in Budapest. Editing by Jane Merriman and Shreya Biswas

For related news and prices, click on the codes in brackets:
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