off-the-wire

CEE MARKETS-Forint extends losses in wake of cenbank flagging cut in rate corridor

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Boldizsar Gyori BUDAPEST, April 21 (Reuters) - The forint eased 0.2% versus the euro on Friday, extending its losses to 2% over the past three days after the National Bank of Hungary flagged a cut in the top of its interest rate corridor earlier this week. At 0908 GMT, the forint traded at 377.8 versus the euro, trimming its gains for the year and drifting further off one-year-highs near 371 per euro hit on Tuesday before the central bank's surprise announcement. The National Bank of Hungary (NBH), which holds its monthly policy meeting next Tuesday, could cut its 25% top collateralised loan rate next week as part of a "multi-step process" towards policy normalisation, its deputy governor said on Wednesday. A currency dealer in Budapest said the forint drifted to weaker levels in thin volumes amid profit taking. "We expect the NBH to keep all of its monetary policy-relevant rates at its non-core April 25 meeting but to cut the upper bound of its interest rate corridor symbolically to the range of 18-20% from the current 25%," economists at Morgan Stanley said in a note. The Polish zloty held steady, outperforming its regional peers, which were mildly weaker, as rate cut expectations there faded. "The zloty stands out positively in its (recent) strengthening against other currencies in the region, which suggests a local factor determining its strengthening," economists at Bank Millennium said. "We see here mainly recent surprises in the current account balance or cancelling some of the interest rate cuts for 2023."


CEE SNAPSHO AT


MARKETS T 1108


CET


CURRENC


IES


Latest Previou Daily Change s


bid close change in 2023 EURCZK Czech <EURCZK 23.5570 23.5000 -0.24% +2.55% = crown =>
EURHUF Hungary <EURHUF 377.800 377.000 -0.21% +5.73% = forint => 0 0
EURPLN Polish <EURPLN 4.6030 4.6010 -0.04% +1.88% = zloty =>
EURRON Romanian <EURRON 4.9429 4.9317 -0.23% -0.01% = leu =>
EURRSD Serbian <EURRSD 117.210 117.295 +0.07% +0.08% = dinar => 0 0


Note: calculated from 1800


daily CET


change



Latest Previou Daily Change s


close change in 2023 .PX Prague 1408.49 1407.77 +0.05% +17.21 00 % .BUX Budapest 43532.6 43538.9 -0.01% -0.60% 6 6
.WIG20 Warsaw <.WIG20 1900.05 1911.19 -0.58% +6.03% >
.BETI Buchares 12426.7 12425.8 +0.01% +6.54% t 6 3
.SBITO Ljubljan <.SBITO 1235.85 1237.95 -0.17% +17.83 P a P> % .CRBEX Zagreb <.CRBEX 2266.98 2266.50 +0.02% +762.7 > 2% .BELEX Belgrade <.BELEX 896.87 889.28 +0.85% +8.76% 15 15>
.SOFIX Sofia <.SOFIX 610.26 611.40 -0.19% +1.46% >



Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
CZ2YT= 2-year <CZ2YT= 5.7560 0.0490 +285bp +3bps RR RR> s
CZ5YT= 5-year <CZ5YT= 5.1400 -0.0060 +264bp -2bps RR RR> s
CZ10YT <CZ10YT 4.7580 0.0070 +230bp +0bps =RR 10-year =RR> s


Poland
PL2YT= 2-year <PL2YT= 6.0730 -0.0160 +317bp -3bps RR RR> s
PL5YT= 5-year <PL5YT= 6.0760 -0.0320 +358bp -4bps RR RR> s
PL10YT <PL10YT 6.0680 -0.0370 +361bp -5bps =RR 10-year =RR> s


FORWARD


3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.17 6.84 6.20 7.17 Rep ><PRIBO


R=>


Hungary <HUFFRA 14.72 13.00 11.67 16.25 ><BUBOR


=>


Poland <PLNFRA 6.85 6.73 6.41 6.90 ><WIBOR


=>


Note: are for ask


FRA prices


quotes



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(Reporting by Boldizsar Gyori and Karol Badohal; Editing by Susan Fenton)


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