CEE MARKETS-Forint, zloty extend gains after central banks rate hike

0

Band Krisztina Than and Alan Charlish

BUDAPEST/WARSAW, March 9 (Reuters)Hungarian forint EURHUF= jumped nearly 2% on Wednesday, rebounding from record lows reached earlier this week, as new data, which showed inflation at 8.3%, fueled expectations of further interest rate hikes.

The Polish forint and zloty EURPLN= already started to rebound on Tuesday after sharp falls after the Polish and Hungarian central banks raised interest rates, bringing some relief to currencies battered by rising economic concerns following Russia’s invasion of Ukraine .

A Budapest dealer said panic in the market had subsided and inflation data also helped the forint’s gains.

“The market is now looking for a new kind of equilibrium,” he said.

Poland’s central bank raised its benchmark rate on Tuesday, although the 75 basis point hike missed some market expectations that had seen chances of a hike of up to 100 basis points.

The National Bank of Hungary (NBH) also raised the top of its interest rate corridor by 100 basis points to 6.4% to create room for further policy tightening. The next move will come on Thursday, when the bank sets the rate on its one-week deposit facility, which is intended to manage short-term market volatility and support the forint.

The forint, which fell to an all-time low of 400 against the euro on Monday, rose 1.82%, trading at 381.80, extending Tuesday’s gains.

Data showed that Hungarian inflation continued to rise in February despite price caps in place on some staple foods, fuel and energy, reflecting strong price pressures in central Europe exacerbated by the war in neighboring Ukraine.

The zloty was also up 2% to 4.843 against the euro, after the bank raised its main policy rate by 75 basis points to 3.5% and substantially raised its inflation forecast due to the economic impact of the war in Ukraine.

Polish central bank governor Adam Glapinski will hold a press conference at 14:00 GMT.

“The press conference (…) will be important as it is expected to outline the outlook for monetary policy in Poland and will likely show strong central bank determination to strengthen the zloty,” Bank Millennium analysts said in a note. .

Elsewhere, the Czech crown EURCZK= added 1.1%.

Most stocks in the region also firmed, with Budapest BUX gaining 4.2%, led by OTP Bank OTPB.BU whose shares jumped 8.6% in a positive correction after recent sharp falls.

prague .PX added 2.3% while Warsaw .WIG20 increased by 2.2%.

CEE MARKETS

INSTANTANEOUS

At 09:33 CET

CURRENCIES

Last

Previous

Daily

Change

bid

Close

change

in 2022

EURCZK=

Czech koruna

EURCZK=

25.3800

25.6670

+1.13%

-2.00%

EURHUF=

Hungarian forint

EURHUF=

381.8000

388.7600

+1.82%

-3.25%

EURPLN=

polish zloty

EURPLN=

4.8430

4.9400

+2.00%

-5.20%

EURRON=

lei in Romanian

EURRON=

4.9485

4.9490

+0.01%

-0.01%

EURHRK=

Croatian kuna

EURHRK=

7.5650

7.5675

+0.03%

-0.63%

EURRSD=

Serbian dinar

EURRSD=

117.5500

117.6500

+0.09%

+0.03%

Note: daily change

calculated from

1800 CET

Last

Previous

Daily

Change

Close

change

in 2022

.PX

prague

.PX

1291.22

1261.6400

+2.34%

N / A

.BUX

Budapest

.BUX

43283.60

41515.50

+4.26%

-14.66%

.WIG20

Warsaw

.WIG20

1950.42

1908.10

+2.22%

-13.96%

.BETI

Bucharest

.BETI

11816.37

11208.12

+5.43%

-9.53%

.SBITOP

Ljubljana

.SBITOP

1063.11

1057.96

+0.49%

-15.32%

.CRBEX

Zagreb

.CRBEX

1928.48

1914.42

+0.73%

-7.26%

.BELEX15

Belgrade

.BELEX15

835.76

835.76

+0.00%

+1.83%

.SOFIX

Sofia

.SOFIX

548.45

547.27

+0.22%

-13.72%

Yield

Yield

propagated

Daily

(bid)

change

vs. Bunds

change

Czech Republic

spread

CZ2YT=RR

2 years

CZ2YT=RR

4.7730

0.0000

+538 bps

-2bps

CZ5YT=RR

5 years

CZ5YT=RR

3.8480

0.0070

+406 basis points

+0 basis points

CZ10YT=RR

10 years

CZ10YT=RR

3.4730

0.0010

+337 basis points

+1 basis points

Poland

PL2YT=RR

2 years

PL2YT=RR

5.1170

0.2450

+573 basis points

+23 basis points

PL5YT=RR

5 years

PL5YT=RR

4.9130

0.0000

+513 basis points

+0 basis points

PL10YT=RR

10 years

PL10YT=RR

4.9190

0.0880

+481 basis points

+9 basis points

CHEEKY

3×6

6×9

9×12

3M interbank

Czech Republic

CZKFRAPRIBOUR=

4.96

4.96

4.72

4.79

Hungary

OYSTERBUBOR=

7.81

7.71

7.51

5.89

Poland

PLNFRAWIBOR=

5.76

5.79

5.76

3.91

Note: ENG Quotes

are for asking prices

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

(Additional reporting by Jason Hovet in Prague; Editing by Rashmi Aich)

(([email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

About Author

Comments are closed.