WARSAW, Nov 30 (Reuters) - The Czech crown and
Polish zloty were on track for their best month in
years on Monday, as central European currencies gained amid
increased optimism about a vaccine-driven economic recovery next
year.
The crown and zloty were heading for their biggest monthly
gains since 2008 and 2012 respectively, at the end of a month
when news regarding coronavirus vaccines and a U.S. presidential
election results seen by many economists as favourable for the
global economy encouraged investors to return to riskier assets.
"The Czech crown, as well as other regional currencies,
benefited from improvement in global sentiment in past weeks,"
said Radomir Jac, chief economist at Generali Investments CEE in
Prague.
"The Czech crown outperformed against the Hungarian forint
and Polish zloty, as it weakened quite a lot since late August,
so there was a room for a recovery, as the crown was
undervalued."
At 1012, GMT the crown was up 0.15% against the euro at
26.16. The zloty gained 0.10% to trade at 4.4781. The Hungarian
forint strengthened 0.47% to 359.95.
In Romania, where markets were closed for a holiday, the leu
was little changed at 4.8725.
Stocks we mainly down, with the biggest losses on Poland"s
WIG 20 index, which was down 1.45%.
"We are seeing a little profit-taking," said Bartosz
Kulesza, an analyst at Pekao in Warsaw, the continuation of a
process that started last week after a strong performance in
November.
Czech and Polish 10-year yields were
both down around 1 basis point at 1.265% 1.231% respectively. In
Poland, the finance ministry was due to announce debt supply for
December at 1400 GMT.
"The finance ministry will probably confirm its intention to
issue bonds at one switching auction on Dec. 11," PKO BP
analysts wrote in a note.
"Low supply of securities will support bond prices until the
end of the year."
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