PRAGUE, Sept 14 (Reuters) - Central European currencies were
caught in a holding pattern on Tuesday as global markets awaited
key U.S. inflation data, with the Hungarian forint and Czech
crown retaining recent gains.
Hungary"s central bank said on Monday it would scrap its
swap tender providing forint liquidity and hold an additional
tender to provide euro liquidity to the banking system on
Wednesday, giving the forint a boost.
The forint mostly held onto those gains on
Tuesday, sticking on the strong side of the psychological 350
per euro level. It traded at 349.60, up 0.2%, at 0836 GMT.
The forint and crown have outpaced gains by peers in central
Europe so far this year, with their respective central banks
both in policy tightening mode since June.
In the Czech Republic, market speculation has shifted to
whether the central bank may opt for a steeper 50 basis point
rate hike when it next meets at the end of September. The
central bank has so far delivered two 25 basis point hikes.
On Tuesday, Czech central banker Vojtech Benda, who has
backed a heftier 50 basis point hike at the last two meetings,
told Czech Radio his position had not softened, with data last
week showing inflation had hit a 13-year high.
The crown inched down 0.1% to 25.38 to the euro
and was off a three-month high hit last week after the latest
inflation data.
In Poland, the zloty also dipped 0.1%, with little
impulse. It has lost 0.7% this month.
"Investors" attention will focus on the U.S. inflation
reading, which is likely to confirm continued high price
pressures, although this should not advance the timing of the
Fed"s monetary policy normalisation," Bank Millennium said.
"Space for further weakening of the zloty is small."
Elsewhere, stock markets were mixed, with Budapest
and Warsaw softening.
Prague was held higher by gains for utility CEZ
and MONETA Money Bank and Komercni Banka
after the latter two got regulator clearance to pay a
scaled-back dividend.
CEE SNAPSHO AT
MARKETS T 1036
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2021
EURCZK Czech
مشاركة :