off-the-wire

CEE MARKETS-Profit taking pushes Central European currencies lower

Kitco Media
By Reuters
Published:
Updated:
Reuters
WARSAW, April 14 (Reuters) - The Czech crown retreated on Friday from a 15-year high against the euro, leading other central European currencies lower as investors cashed in on recent gains. On Thursday the Czech currency closed at its strongest point since July 2008, having found support from hawkish central bank comments recently. The Polish zloty meanwhile ended Thursday at its highest level since late December and has gained nearly 1% over the past three days. "One can clearly see there is appetite for profit taking on such positions," Bank Pekao economist Piotr Bartkiewicz said. "The zloty has pushed ahead of the emerging markets basket in recent days and has become expensive in relation to other currencies - this makes exiting this type of position, closing such aggressive bets, quite attractive and it is probably happening," he added. According to a Bank Millennium note, it will be increasingly difficult for the zloty to gain over the next few days and possibly weeks. The Czech crown was down 0.42%, while the Polish zloty had slid 0.22% by 0940 GMT. "We are more of the opinion that hawkish comments (on possible rate hikes) are communication weapon to dissuade markets from betting on a premature decline in interest rate cuts, possibly to help the crown," CSOB said. The Hungarian forint was also down, losing 0.23%.



CEE SNAPSHOT AT


MARKETS 1140 CET


CURRENCI


ES


Latest Previous Daily Change bid close change in 2023 Czech 23.3410 23.2420 -0.42% +3.50% crown
Hungary 374.5000 373.6500 -0.23% +6.66% forint
Polish 4.6485 4.6385 -0.22% +0.88% zloty
Romanian 4.9445 4.9384 -0.12% -0.04% leu
Serbian 117.2300 117.3000 +0.06% +0.06% dinar
Note: calculated from 1800 CET
daily
change



Latest Previous Daily Change close change in 2023 Prague 1415.54 1404.350 +0.80% +17.79% 0
Budapest 43255.59 42687.24 +1.33% -1.23% Warsaw 1844.89 1840.77 +0.22% +2.95% Bucharest 12459.85 12459.85 +0.00% +6.83% Ljubljana 1226.38 1229.13 -0.22% +16.93% Zagreb 2249.94 2249.17 +0.03% +756.24 % Belgrade <.BELEX15 878.88 878.88 +0.00% +6.58% >
Sofia 615.55 615.55 +0.00% +2.34%


Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
2-year <CZ2YT=RR 6.0230 0.2600 +321bps +23bps >
5-year <CZ5YT=RR 5.2110 0.0170 +280bps -1bps >
10-year <CZ10YT=R 4.8020 0.0320 +241bps +1bps R>
Poland
2-year <PL2YT=RR 6.1470 -0.0220 +334bps -5bps >
5-year <PL5YT=RR 6.1550 -0.0210 +374bps -4bps >
10-year <PL10YT=R 6.2060 -0.0210 +382bps -4bps R>


FORWARD


3x6 6x9 9x12 3M interban k Czech Rep < 7.23 6.99 6.40 7.18 PRIBOR=>
Hungary < 15.50 13.77 12.45 16.31 BUBOR=>
Poland < 6.88 6.81 6.45 6.90 WIBOR=>
Note: FRA are for ask prices
quotes

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(Reporting by Karol Badohal in Warsaw, and Jason Hovet in Prague; Editing by Susan Fenton)


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