CEE MARKETS-Zloty recovers from 12-year low, leu steadies after sharp fall

  • 3/30/2021
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PRAGUE, March 30 (Reuters) - The Polish zloty rebounded from a nearly 12-year low on Tuesday, outperforming central European peers, even as a surge in COVID-19 infections in the region"s biggest economy limited gains. Romania"s leu also steadied after its biggest daily drop in two years on Monday, when it fell out of the 4.80-4.90 trading range it had sat in over the past year. It was down 0.1% at 4.914 per euro at 0927 GMT on Tuesday. A trader said a correction had been overdue, while Erste Group Bank said recent central banker comments "suggest that policymakers might allow the currency to move toward a new trading band." "We expect the leu to depreciate toward 4.95 by the end of the year," Erste said. Other central European currencies weakened a touch, staying off multi-month lows hit this month due to surging COVID-19 cases and a strengthening U.S. dollar. Stocks were mixed, with Prague up 0.31% and Budapest and Warsaw falling 0.07% and 0.32%, respectively. The zloty touched its lowest level since April 2009 on Monday, at 4.675 to the euro, but was up 0.4% at 4.648 per euro in morning trade. Analysts at Bank Pekao said the currency could test the 4.68 level next. Central Europe has seen a resurgence in COVID-19 cases, with Poland having seen a record high daily rise in infections last week, and Hungary and the Czech Republic reporting the highest number of deaths per capita over the past seven days. The crown edged down to 26.105 to the euro on Tuesday, while Hungary"s forint was down less than 0.1% at 363.10. Shares of Hungary"s 4iG gained as much as 6% after the company announced it signed a preliminary agreement to acquire DIGI Group. CEE SNAPSHO AT MARKETS T 1127 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 1092.47 1089.08 +0.31% +6.36% 00 .BUX Budapest 44584.6 44617.7 -0.07% +5.88% 5 3 .WIG20 Warsaw <.WIG20 1946.73 1953.02 -0.32% -1.88% > .BETI Buchares 11026.8 10970.9 +0.51% +12.45 t 7 6 % .SBITO Ljubljan <.SBITO 985.55 983.89 +0.17% +9.40% P a P> .CRBEX Zagreb <.CRBEX 1864.99 1851.43 +0.73% +7.23% > .BELEX Belgrade <.BELEX 751.91 757.10 -0.69% +0.44% 15 15> .SOFIX Sofia <.SOFIX 499.78 500.24 -0.09% +11.68 > % 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, Luiza Ilie in Bucharest, Anita Komuves in Budapest and Pawel Florkiewicz in Warsaw; Editing by Ramakrishnan M.)

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