CEE MARKETS-FX extends gains, eyes on Polish July rate meeting

  • 6/28/2021
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BUDAPEST, June 28 (Reuters) - Central European currencies edged marginally higher on Monday with the Polish zloty leading the region, backed by last week"s bout of tightening in Hungary and the Czech Republic following the COVID-19 pandemic. The Polish central bank has struck a more dovish tone but some analysts see a potential pivot from it in July. Governor Adam Glapinski said on Friday that exiting unconventional monetary policy measures must be spread over time. He said the bank"s asset purchase programme will be wound up before it raises rates. Monetary Policy Council member Eryk Lon said in an article on Monday that quick tightening of Polish monetary policy could hinder economic recovery. Poland"s main interest rate has been at a record low of 0.1% since May 2020. By 0910 GMT, the zloty had edged up 0.12% to trade at 4.5085 to the euro, followed by the Romanian leu and the Hungarian forint with a 0.1 advance. The Czech crown was virtually unchanged at 25.4650. "On the front end (of the rates curve), more and more is being priced in and three more hikes in 2021 is starting to look like the base scenario in the eyes of the market," Komercni Banka trader Marek Lesko said in a note. Central Europe has been facing stronger inflationary pressures than the euro zone, putting central banks on alert. CEE SNAPSHOT AT MARKETS 1110 CET CURRENCI ES Latest Previous Daily Change bid close change in 2021 Czech 25.4640 25.4850 +0.08% +3.00% crown Hungary 350.9500 351.0500 +0.03% +3.35% forint Polish 4.5090 4.5135 +0.10% +1.11% zloty Romanian 4.9265 4.9295 +0.06% -1.25% leu Croatian 7.4970 7.4973 +0.00% +0.67% kuna Serbian 117.5300 117.6050 +0.06% +0.03% dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 Prague 1161.84 1161.180 +0.06% +13.11 0 % Budapest 48036.26 48461.47 -0.88% +14.08 % Warsaw 2265.71 2282.46 -0.73% +14.20 % Bucharest 11959.87 11875.16 +0.71% +21.97 % Ljubljana 1136.23 1137.00 -0.07% +26.13 % Zagreb 2004.56 2004.95 -0.02% +15.25 % Belgrade <.BELEX15 778.23 775.37 +0.37% +3.96% > Sofia 555.80 556.03 -0.04% +24.19 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year s 5-year s 10-year s Poland 2-year s 5-year s 10-year s FORWARD 3x6 6x9 9x12 3M interba nk Czech Rep < 0.95 1.35 1.61 0.67 PRIBOR=> Hungary < 1.53 1.85 2.00 1.04 BUBOR=> Poland < 0.37 0.63 0.86 0.21 WIBOR=> Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by radu Marinas in Bucharest and Jason Hovet in Prague; Editing by Timothy Heritage) Our Standards: The Thomson Reuters Trust Principles.

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