The Polish zloty and Czech crown were 0.1% weaker against the euro. The zloty is central Europe's worst performing currency, down 1.25% overall this year, weighed down by a funding stand-off with the European Union and weak economic data.
The crown was holding around its 14-year highs, stuck around levels it has traded at for much of February.
"Worsening global sentiment in connection to rates repricing in an upward direction in the United States is not playing into the hands of the crown, although the safe harbour effect is staying thanks to the central bank's intervention commitment," CSOB said. The Czech National Bank has kept a pledge to intervene to prevent sharp weakening since last May although it has been out of markets in recent times, according to its most recent data releases. The Romanian leu , supported by foreign interest in planned government bond tenders, was up 0.2% on the day. The Hungarian forint was down 0.2% against the euro at 381.5500. The strength of the dollar is generally negative for central Europe's high-yield currencies. Hungary's central bank holds an interest rate meeting on Feb. 28. The bank, which was at the forefront of aggressive interest rate tightening to curb decades of high inflation could take a wait-and-see approach with inflation still running above 20% and uncertainty over access to EU recovery funds.
"The NBH appears to be serious about its hawkish tone, and in our view it will be a challenge for the market to start pricing in a central bank rate normalisation again," ING Bank said in a research note.
"On the other hand, in the interim, core rates should ease their pressure on the long end of the curve." CEE SNAPSHO AT
MARKETS T 1227
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
Czech <EURCZK= 23.7050 23.6900 -0.06% +1.91%
crown >
Hungary <EURHUF= 382.100 380.900 -0.31% +4.54%
forint > 0 0
Polish <EURPLN= 4.7520 4.7450 -0.15% -1.31%
zloty >
Romanian <EURRON= 4.9110 4.9184 +0.15% +0.64%
leu >
Croatian <EURHRK= 7.5330 7.5365 +0.05% +0.05%
kuna >
Serbian <EURRSD= 117.280 117.310 +0.03% +0.02%
dinar > 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
Prague 1389.13 1376.52 +0.92% +15.59
00 %
Budapest 45520.8 45063.4 +1.01% +3.94%
3 8
Warsaw 1815.58 1796.87 +1.04% +1.32%
Buchares 12337.9 12283.6 +0.44% +5.78%
t 4 3
Ljubljan <.SBITOP 1202.44 1187.52 +1.26% +14.65
a > %
Zagreb 2177.34 2169.41 +0.37% +728.6
1%
Belgrade <.BELEX1 885.19 877.73 +0.85% +7.35%
5>
Sofia 617.08 616.37 +0.12% +2.59%
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 5.9140 0.0700 +299bp +6bps
R> s
5-year <CZ5YT=R 5.1590 -0.0510 +257bp -7bps
R> s
<CZ10YT= 4.8510 0.0060 +231bp -2bps
10-year RR> s
Poland
2-year <PL2YT=R 6.5450 0.0560 +362bp +5bps
R> s
5-year <PL5YT=R 6.6770 0.0660 +408bp +4bps
R> s
<PL10YT= 6.6970 0.0550 +415bp +3bps 10-year RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech 7.21 7.04 6.54 7.20 Rep <PRIBOR=
>
Hungary 15.50 14.14 12.70 16.30 Poland 7.02 7.07 6.82 6.94 Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague,
Gergely Szakacs in Budapest and Pawel Florkiewicz in Warsaw;
Editing by Raissa Kasolowsky)
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