CEE MARKETS-Crown climbs to 2-wk high, other currencies move in narrow range

  • 1/19/2021
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PRAGUE, Jan 19 (Reuters) - The Czech crown edged up to a two-week high on Tuesday, the biggest mover among central European currencies, most of which drifted sideways, while stock markets took a breather after an early-2021 rally. The crown was up 0.1% at 26.139 to the euro at 0953 GMT, boosted by a weaker dollar that buoyed the region. The Polish zloty slipped less than 0.1% to 4.534 per euro, after the central bank"s comments last week on the possibility of further interest rate cuts. Warsaw stocks lost 0.3%, while Budapest edged up 0.2% and Prague was virtually flat, giving up earlier gains. Stocks have largely paused in a rally seen at the end of 2020 that continued into the early days of the new year. Currencies have shifted into tight ranges. Overall, some dealers said trade was shifting to a risk-off zone, with markets watching what economic toll the latest wave of the pandemic and the shift to a new U.S. administration in the White House would have. "The mood is a bit more risk-averse now, the rally in emerging stocks stopped, stocks started to move sideways and currencies followed that," a Budapest trader said. The Hungarian forint was flat at 359.35 per euro. Romania"s leu was also flat but trending weaker after the central bank unexpectedly cut its benchmark interest rate by a quarter-point to 1.25% on Friday. A dovish shift in Poland in the past month has also weighed on the zloty. Polish central bank governor Adam Glapinski said on Friday the base scenario was no change in borrowing costs, but he also said rates could drop below zero if the coronavirus pandemic causes further, significant damage to the economy. "We maintain our expectations of stabilisation of the EUR/PLN exchange rate around 4.53," Bank Millennium said. CEE SNAPSHO AT MARKETS T 1053 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 EURCZK Czech EURHUF Hungary 0 0 EURPLN Polish EURRON Romanian EURHRK Croatian EURRSD Serbian 0 0 Note: calcula 1800 daily ted CET change from STOCKS Latest Previou Daily Change s close change in 2021 .PX Prague 1074.28 1074.97 -0.06% +4.59% 00 .BUX Budapest 44854.1 44755.5 +0.22% +6.52% 1 9 .WIG20 Warsaw <.WIG20 2016.99 2023.74 -0.33% +1.66% > .BETI Buchares 10231.9 10183.9 +0.47% +4.35% t 1 9 .SBITO Ljubljan <.SBITO 949.66 951.13 -0.15% +5.42% P a P> .CRBEX Zagreb <.CRBEX 1819.08 1819.99 -0.05% +4.59% > .BELEX Belgrade <.BELEX 731.63 732.33 -0.10% -2.27% 15 15> .SOFIX Sofia <.SOFIX 472.09 470.35 +0.37% +5.49% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year s CZ5YT= 5-year s CZ10YT s Poland PL2YT= 2-year s PL5YT= 5-year s PL10YT s FRA 3x6 6x9 9x12 3M interba nk Czech Hungary Poland Note: FRA quotes are for ask prices *********************************** *************************** (Reporting by Jason Hovet in Prague, Anita Komuves in Budapest and Alan Charlish in Warsaw; Editing by Rashmi Aich)

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