off-the-wire

UPDATE 1-CEE MARKETS-Weaker dollar helps zloty and forint hit over one-year highs

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates currency quotes, table, adds Poland and Romania rates decisions) WARSAW, May 10 (Reuters) - The Polish zloty and Hungarian forint hit their highest levels in over a year on Wednesday as a weaker dollar signalled a continued appetite for riskier assets among investors. By 1340 GMT the zloty had gained 0.71% to 4.5200 per euro, pushing further to its highest level since February 2022. Earlier on Wednesday the forint firmed 0.47% to 369.4000 per euro, its strongest level since April 2022.


"I think the fact that the euro-dollar exchange rate, despite the correction, remains at an elevated level is conducive here," Ipopema Securities economist Marcin Sulewski said. Sulewski said he, however, sees little room for further growth ahead. "I think that the dollar in the next 2-3 weeks could gain a little (against the euro), so here the potential for further appreciation of currencies in our region is limited." The dollar eased against the euro on Wednesday after gaining earlier this week. A Budapest-based trader said this morning's CPI data for Hungary meant that rate-cutting shouldn't be expected in the near future, which supported the forint. He also said


U.S. CPI data this afternoon also made the market price out any rate-hike for the dollar, pushing the Hungarian currency higher.


Polish and Romanian central banks held key rates on hold on Wednesday, as expected by analysts. Elsewhere the Czech crown eased 0.15%.


CEE SNAPSHOT AT


MARKETS 1540 CET


CURRENCI


ES


Latest Previous Daily Change bid close change in 2023 Czech 23.4270 23.3930 -0.15% +3.12% crown
Hungary 369.8500 371.1500 +0.35% +8.00% forint
Polish 4.5200 4.5520 +0.71% +3.75% zloty
Romanian 4.9235 4.9209 -0.05% +0.39% leu
Serbian 117.2300 117.2800 +0.04% +0.06% dinar
Note: calculated from 1800 CET
daily
change



Latest Previous Daily Change close change in 2023 Prague 1388.27 1384.150 +0.30% +15.52% 0
Budapest 46405.08 46741.15 -0.72% +5.96% Warsaw 1940.83 1919.92 +1.09% +8.30% Bucharest 12188.61 12181.07 +0.06% +4.50% Ljubljana 1211.04 1213.35 -0.19% +15.47% Zagreb 2243.78 2242.45 +0.06% +753.90 % Belgrade <.BELEX15 913.91 914.49 -0.06% +10.83% >
Sofia 619.26 617.95 +0.21% +2.95%


Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
2-year <CZ2YT=RR 5.7120 -0.2670 +308bps -23bps >
5-year <CZ5YT=RR 5.0310 -0.0600 +280bps -2bps >
10-year <CZ10YT=R 4.5350 -0.0210 +224bps +2bps R>
Poland
2-year <PL2YT=RR 5.7710 -0.0270 +314bps +1bps >
5-year <PL5YT=RR 5.7420 -0.0350 +351bps +1bps >
10-year <PL10YT=R 5.8060 -0.0320 +351bps +1bps R>


FORWARD


3x6 6x9 9x12 3M interban k Czech Rep < 7.27 6.86 6.15 7.18 PRIBOR=>
Hungary < 14.61 12.87 11.68 16.20 BUBOR=>
Poland < 6.80 6.47 6.07 6.89 WIBOR=>
Note: FRA are for ask prices
quotes

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(Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest, Luiza Ilie in Bucharest; Editing by Eileen Soreng and Shailesh Kuber)


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