off-the-wire

CEE MARKETS-Zloty hits 10-month high before slight retreat

Kitco Media
By Reuters
Published:
Updated:
Reuters
WARSAW, April 28 (Reuters) - The Polish zloty hit a 10-month high on Friday before retreating somewhat as dollar gains cut into sentiment and markets drifted into a long holiday weekend. The Polish currency has been the best performer in the region in recent weeks after it lagged peers earlier this year. Fading rate cut expectations and a weaker dollar have helped. The zloty was down 0.15% at 4.5905 to the euro at 1012 GMT, from a session high of 4.5735. Data on Friday showed Poland's headline inflation slowed to a rate of 14.7% year-on-year in April, continuing its retreat faster than expected, although core inflation remained a worry for some experts. "Following this data the zloty at first firmed against the euro and dollar, but is now falling," a Warsaw-based trader said. "I think this is caused rather by the falling eurodollar, so a firming dollar, meaning sentiment is somewhat worse." The trader said stocks were also down, squaring up at the end of the week following earlier gains. Bank Millennium bank economists said it will be increasingly harder for the zloty to firm beyond 4.5822 and expect it to enter a sideways trend, unless new information comes. In other trade, ahead of a holiday that will leave most markets closed on Monday, May 1, the Hungarian forint nudged up but was mostly steady after swinging back from weaker levels this week. It had fallen from a 1-year peak last week when the central bank flagged a cut to the top of its rate corridor. The Czech crown also remained largely flat.


CEE SNAPSHOT AT


MARKETS 1212 CET


CURRENCI


ES


Latest Previous Daily Change bid close change in 2023 Czech 23.5050 23.4920 -0.06% +2.78% crown
Hungary 373.6000 373.7500 +0.04% +6.92% forint
Polish 4.5905 4.5835 -0.15% +2.16% zloty
Romanian 4.9350 4.9399 +0.10% +0.15% leu
Serbian 117.1700 117.2700 +0.09% +0.11% dinar
Note: calculated from 1800 CET
daily
change



Latest Previous Daily Change close change in 2023 Prague 1376.08 1416.490 -2.85% +14.51% 0
Budapest 44818.34 44671.82 +0.33% +2.34% Warsaw 1934.82 1948.07 -0.68% +7.97% Bucharest 12328.21 12318.55 +0.08% +5.70% Ljubljana 1233.61 1238.05 -0.36% +17.62% Zagreb 2245.88 2252.05 -0.27% +754.69 % Belgrade <.BELEX15 905.27 910.59 -0.58% +9.78% >
Sofia 607.91 603.87 +0.67% +1.07%


Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
2-year <CZ2YT=RR 5.6500 0.1780 +287bps +24bps >
5-year <CZ5YT=RR 4.9190 -0.1030 +254bps -3bps >
10-year <CZ10YT=R 4.6280 0.0030 +225bps +7bps R>
Poland
2-year <PL2YT=RR 5.8810 -0.1380 +310bps -8bps >
5-year <PL5YT=RR 5.9320 -0.0600 +355bps +1bps >
10-year <PL10YT=R 5.9170 -0.0580 +353bps +1bps R>


FORWARD


3x6 6x9 9x12 3M interban k Czech Rep < 7.17 6.70 6.02 7.18 PRIBOR=>
Hungary < 14.60 12.44 11.07 16.23 BUBOR=>
Poland < 6.79 6.57 6.18 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 Krishna Chandra Eluri)


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