Budapest hit its lowest since November, and Warsaw's blue-chip index fell to a three-month low. U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank. Market turmoil led investors to speculate the U.S. Federal Reserve will no longer raise interest rates by a super-sized 50 basis points this month, hitting the dollar and limiting losses in central Europe's currencies. A Prague FX trader said "there is a bit of a bitter taste from the SVB case" but the weaker dollar was providing some comfort. The Hungarian forint eased 0.6% to 385.05 versus the euro by 1019 GMT, while the Czech crown also dropped 0.2%.
In Hungary, investors were also eyeing any fallout from a policy dispute between the central bank and the government over tackling inflation that erupted last week.
Prime Minister Viktor Orban said on Thursday the National Bank of Hungary's cuts to money supply were too drastic as inflation has probably peaked and price growth was driven by energy costs and sanctions on Russia. The comments came after sharp criticism by the central bank chief of the government's economic policy. On Monday, the Hungarian central bank declined to comment on whether NBH Governor Gyorgy Matolcsy had met with Orban, or whether any meeting was in the pipeline. In Poland, the zloty was also weaker by 0.3% at 4.689 to the euro. "The dollar is weaker across the board... and that means that zloty-dollar, forint-dollar, crown-dollar etc are cheaper as well and if they are cheaper this is an opportunity for importers," said a Warsaw-based dealer.
CEE SNAPSHO AT
MARKETS T 1119
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
EURCZK Czech <EURCZK 23.6600 23.6140 -0.19% +2.10%
= crown =>
EURHUF Hungary <EURHUF 385.050 382.750 -0.60% +3.74%
= forint => 0 0
EURPLN Polish <EURPLN 4.6890 4.6760 -0.28% +0.01%
= zloty =>
EURRON Romanian <EURRON 4.9146 4.9135 -0.02% +0.57%
= leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05%
= kuna =>
EURRSD Serbian <EURRSD 117.200 117.330 +0.11% +0.09%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
.PX Prague 1343.18 1376.23 -2.40% +11.77
00 %
.BUX Budapest 42383.0 43077.6 -1.61% -3.22%
5 9
.WIG20 Warsaw <.WIG20 1746.25 1799.58 -2.96% -2.55%
>
.BETI Buchares 12255.0 12354.7 -0.81% +5.07%
t 1 6
.SBITO Ljubljan <.SBITO 1187.61 1194.66 -0.59% +13.24
P a P> %
.BELEX Belgrade <.BELEX 892.98 894.40 -0.16% +8.29%
15 15>
.SOFIX Sofia <.SOFIX 620.74 632.75 -1.90% +3.20%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.5010 -0.2830 +278bp +6bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 5.0360 -0.1200 +268bp +15bps
RR RR> s
CZ10YT <CZ10YT 4.6510 -0.1730 +237bp +4bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 5.9330 -0.2440 +321bp +10bps
RR RR> s
PL5YT= 5-year <PL5YT= 5.9510 -0.1660 +360bp +11bps
RR RR> s
PL10YT <PL10YT 5.9740 -0.1500 +370bp +7bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.20 6.89 6.26 7.20 Rep ><PRIBO
R=>
Hungary <HUFFRA 14.90 13.22 12.02 16.29 ><BUBOR
=>
Poland <PLNFRA 6.86 6.59 6.17 6.93 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Krisztina Than in Budapest, Jason Hovet in Prague and Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)
All emerging market news Spot FX rates Eastern Europe spot FX Middle East spot FX Asia spot FX Latin America spot FX Other news and reports World central bank news Economic Data Guide Official rates Emerging Diary Top events Diaries Diaries Index ))
