BUCHAREST, Feb 7 (Reuters) - Most central European currencies edged higher against the euro on Monday, as investors awaited the outcome of central bank meetings in Poland and Romania, where policymakers are expected to raise rates further.
By 1010 GMT, the Hungarian forint was up 0.3% against the euro at 352.7500, while the Czech crown and Polish zloty were each up 0.2% at 24.2440 and 4.5522, respectively.
The Polish central bank is expected to raise its main interest rate on Tuesday, adding to a 50 basis points hike in January. Analysts said markets were also looking ahead to comments by Governor Adam Glapinski the following day.
Bank Millennium said in a note that earlier hawkish comments from Glapinski had "increased expectations as to the scale and pace of interest rate increases in Poland and, along with political decisions reducing tensions in relations with the European Union, contributed to a significant strengthening of the Polish currency."
Romanian policymakers are also expected to hike interest rates by 25 basis points on Wednesday.
The bank has favoured a gradual tightening approach in the face of uncertain inflationary factors, but with the benchmark now at the lowest in the region, the Romanian leu was flat against the euro at 4.9460.
The Czech crown was up against the euro, but off a high hit last Thursday before its central bank hiked the main interest rate by 75 basis points to a 20-year high of 4.50%. The move was in line with expectations but less than some analysts anticipated.
"What the guidance tells us is that the rate can rise to much higher than its long-term level this year," Commerzbank said in a note. "Our forecast is for the Czech crown to outperform its CE3 peers over the coming year."
The Hungarian forint is the lead performer for the year so far, with a 4.7% gain, followed by the crown.
Stocks in the region were mixed, with Warsaw's sliding 0.7% and Prague's down 0.2%. Bucharest equities and Budapest's were up 0.5% and 0.2%, respectively.
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CEE MARKETS |
SNAPSHOT |
AT 1127 CET |
|||
|
CURRENCIES |
|||||
|
Latest |
Previous |
Daily |
Change |
||
|
bid |
close |
change |
in 2022 |
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|
Czech crown |
24.2440 |
24.2800 |
+0.15% |
+2.59% |
|
|
Hungary forint |
352.9000 |
353.7400 |
+0.24% |
+4.67% |
|
|
Polish zloty |
4.5531 |
4.5600 |
+0.15% |
+0.83% |
|
|
Romanian leu |
4.9460 |
4.9465 |
+0.01% |
+0.04% |
|
|
Croatian kuna |
7.5230 |
7.5275 |
+0.06% |
-0.07% |
|
|
Serbian dinar |
117.5300 |
117.5800 |
+0.04% |
+0.04% |
|
|
Note: daily change |
calculated from |
1800 CET |
|||
|
Latest |
Previous |
Daily |
Change |
||
|
close |
change |
in 2022 |
|||
|
Prague |
(.PX) |
1439.57 |
1442.7200 |
-0.22% |
#VALUE! |
|
Budapest |
(.BUX) |
51898.58 |
51806.40 |
+0.18% |
+2.32% |
|
Warsaw |
(.WIG20) |
2159.37 |
2174.57 |
-0.70% |
-4.74% |
|
Bucharest |
(.BETI) |
13440.92 |
13386.16 |
+0.41% |
+2.91% |
|
Ljubljana |
(.SBITOP) |
1278.41 |
1280.70 |
-0.18% |
+1.83% |
|
Zagreb |
(.CRBEX) |
2140.89 |
2131.85 |
+0.42% |
+2.96% |
|
Belgrade |
(.BELEX15) |
859.37 |
860.80 |
-0.17% |
+4.70% |
|
Sofia |
(.SOFIX) |
627.92 |
626.52 |
+0.22% |
-1.22% |
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Yield |
Yield |
Spread |
Daily |
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|
(bid) |
change |
vs Bund |
change in |
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|
Czech Republic |
spread |
||||
|
2-year |
3.8880 |
0.1510 |
+412bps |
+12bps |
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|
5-year |
3.2540 |
-0.0590 |
+322bps |
-10bps |
|
|
10-year |
3.1050 |
-0.0330 |
+287bps |
-6bps |
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|
Poland |
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|
2-year |
3.6340 |
-0.0200 |
+386bps |
-5bps |
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|
5-year |
3.9830 |
0.0290 |
+395bps |
-1bps |
|
|
10-year |
3.9080 |
-0.0070 |
+367bps |
-4bps |
|
|
FORWARD |
|||||
|
3x6 |
6x9 |
9x12 |
3M interbank |
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|
Czech Rep |
4.96 |
4.94 |
4.72 |
4.74 |
|
|
Hungary |
5.27 |
5.54 |
5.49 |
4.52 |
|
|
Poland |
4.39 |
4.63 |
4.65 |
3.11 |
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Note: FRA quotes |
are for ask prices |
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************************************************************** |
Reporting by Luiza Ilie in Bucharest, Anita Komuves in Budapest, Pawel Florkiewicz in Warsaw and Robert Muller in Prague; Editing by Devika Syamnath
Source: Reuters