BUCHAREST, July 29 (Reuters) - Most central European stocks
and currencies tracked broader markets higher on Thursday, after
U.S. Federal Reserve Chair Jerome Powell indicated the central
bank would wait further to taper stimulus.
Powell on Wednesday said the job market needed to recover
more before the Fed considers pulling back its support aimed at
countering the economic damage from the COVID-19 pandemic.
By 0930 GMT, Hungary"s benchmark index led gains in
the region, adding 1.4%. Poland"s was up 0.7%,
Romania"s 0.2% and Czech equities 0.1%.
The Hungarian forint rose 0.4% to a near one-week
high against the euro at 358.8700. The Czech crown was
up 0.3% at 25.5380.
In June, the Czech and Hungarian central banks became the
European Union"s first policymakers to tighten interest rates
since the pandemic hit, faced with strong inflationary
pressures.
Hungary further raised rates by more than expected on
Tuesday and said it would take "firm steps" on a monthly basis
to rein in inflation.
Czech deputy central bank governor, Tomas Nidetzky, also
said earlier this week he supported a swift pace of raising
borrowing costs.
"Based on domestic monetary policy, both the crown and
forint have room to outperform the zloty and the other major EM
currencies in the coming weeks," Unicredit said in a note.
Elsewhere in the region, the Polish zloty was 0.2% higher
against the euro. The Romanian leu was flat.
Romania"s central bank does not plan to hike its benchmark
interest rate at its next meeting in August, although it is
assessing a timeline for a return to policy normalisation.
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