CORRECTED-CEE MARKETS-Currencies slide as risk appetite wanes

  • 8/17/2021
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(Corrects size of Romanian leu"s move and rate in paragaph 12) By Anita Komuves BUDAPEST, Aug 17 (Reuters) - Central European currencies slid on Tuesday, pressured by global market uncertainty over the spread of coronavirus infections driven by the Delta variant and weak economic data from China and the United States. The Hungarian forint weakened 0.17% to 351.90 per euro, still trading near five-week highs that it hit in the previous session. The forint has recently been supported by the rate hike cycle that the central bank started in June in order to fight inflation as the economy roared back from the crisis caused by the pandemic. The country"s economy grew 2.7% quarter-on-quarter in the April-June period, data showed on Tuesday. "The market mood is a bit uncertain because of the spread of the Delta variant and the events in Afghanistan, so I do not expect the forint to firm past 350 in the near future," a Budapest-based trader said. "It will not significantly weaken, either, as we keep seeing zloty-forint flows that support the forint." The rate difference between Poland and Hungary has caused flows in the zloty-forint trade in the past weeks, traders and analysts have said. Unlike the Czech and Hungarian central banks that started tightening policy in June to fight inflation, the National Bank of Poland has kept its dovish stance. "Faster inflation readings may be gradually impacting views on the MPC, but will not result in concrete action in the next quarter or so. Meanwhile, the negative real interest rate is weighing down on the zloty exchange rate," Commerzbank wrote. The zloty is also pressured by external conditions such as waning global risk-taking due to weak data from China and tensions in Afghanistan, as well as Poland"s conflict with the European Union, Bank Millennium said in a note. The Polish zloty slipped 0.15% to 4.5680 versus the common currency. Elsewhere, the Czech crown was 0.16% lower and trading at 25.465 to the euro. The Romanian leu edged down 0.12% to 4.9230 per euro. Stocks in the region were mixed, with Budapest up 0.7% and hitting another record high while Warsaw gained 0.2%. Prague was flat while Bucharest was 0.24% lower. CEE SNAPSHO AT MARKETS T 1101 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech EURHUF= Hungary 0 EURPLN= Polish EURRON= Romania EURHRK= Croatia EURRSD= Serbian 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1275.07 1275.220 -0.01% +24.14 0 % .BUX Budapes 50534.2 50183.56 +0.70% +20.01 t 5 % .WIG20 Warsaw 2286.70 2282.10 +0.20% +15.26 % .BETI Buchare 12111.4 12141.13 -0.24% +23.52 st 7 % .SBITOP Ljublja <.SBITOP 1193.46 1195.51 -0.17% +32.48 na > % .CRBEX Zagreb 1971.11 1971.17 -0.00% +13.33 % .BELEX1 Belgrad <.BELEX1 810.39 807.83 +0.32% +8.25% 5 e 5> .SOFIX Sofia 579.77 583.37 -0.62% +29.55 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c CZ2YT=R s CZ5YT=R s CZ10YT= s Poland PL2YT=R s PL5YT=R s PL10YT= s FORWARD 3x6 6x9 9x12 3M interba nk Czech 1.64 2.05 2.21 0.97 Rep Hungary 2.12 2.20 2.27 1.39 Poland 0.43 0.63 0.84 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Additional reporting by Alan Charlish in Warsaw; Editing by Emelia Sithole-Matarise) Our Standards: The Thomson Reuters Trust Principles.

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