April 1 (Reuters) - Central European currencies rose on
Thursday, with the Polish zloty leading gains, as
investors squared off positions ahead of the Easter weekend,
brushing off concerns over a new record number of coronavirus
cases in the country.
The zloty had touched a 12-year low at the beginning of the
week amid concerns about surging numbers of COVID-19 cases in
the country, but has since rebounded and outperformed regional
peers.
"This is ahead of holidays -- the zloty was underperforming
earlier, now it"s outperforming... it seems like the main reason
is probably the market was long, squaring positions ahead of the
Easter holidays," a Warsaw-based currency trader said.
Grzegorz Ogonek, an economist at Santander Bank Polska, said
the zloty had also been supported by a lower-than-expected 2020
general government deficit, which came in at 6.9% of GDP
according to statistics office data.
At 0929 GMT, the zloty was 0.17% firmer against the euro at
4.624. The Czech crown was 0.12% firmer at 26.08 and
the Hungarian forint was little changed at 362.10.
The forint has strengthened since last week, after the
central bank said it was ready to prevent a sustained rise in
inflation, traders said.
"The euro-forint rate is near a very important level. It
arrived at the 50-day moving average, and if it breaks that, it
can continue moving first until the 360-level," brokerage
Equilor wrote.
Polish 10-year yields were little changed at
1.572%. On Wednesday, the Polish central bank, which had earlier
announced that it would increase the frequency and flexibility
of its bond-buying operations, said it could hold more
operations in April.
Czech 10-year yields fell almost 7 basis points
to 1.88%.
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