CEE MARKETS-FX stable as markets eye dollar strength, oil prices

By Reuters News

- Central European currencies were mostly steady on Tuesday, with the Hungarian forint stabilising after a fall in the previous session, as investors watched oil prices and a stronger dollar.

  • The dollar rose on Tuesday, while oil prices crept higher, with Brent crude futures above $106 a barrel as markets doubted the success of renewed efforts to end the Iran war.

  • Hungary's forint edged down to 367.80 against the euro, stabilising after losses in the previous session, when it fell about 0.6%.

  • "One reason for the forint's weakening was the strengthening dollar, and the other was what central bank deputy governor Zoltan Kurali said on Friday about possible further rate cuts," MBH Bank analysts wrote in a note.

  • On Friday, Kurali told Reuters that Hungary's central bank could still deliver a rate cut by the end of this year if external market conditions are favourable and the government presents a credible deficit-cutting plan to join the euro.

  • A week ago, the National Bank of Hungary left its base rate steady at 5.5% as expected, pausing a series of interest rate cuts.

  • The Polish zloty was a touch stronger at 4.3715 per euro.

  • "The zloty's performance will once again depend primarily on geopolitics, including those in our region, and the continued trend of the dollar ... in the short term, a significant portion of the negative factors have already been priced into the FX market," PKO Bank analysts wrote.

  • The Czech crown eased 0.1% to 24.424 per euro.

  • Stocks in the region were lower, with Prague's blue-chip index .PX down 0.4%.

  • Warsaw's .WIG20 lost 0.2% while Budapest's .BUX was 0.2% lower.

CEE MARKETS SNAPSHOT AT 1122 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2026

Czech crown

24.4240

24.4000

-0.10%

-1.05%

Hungary forint

367.8000

367.7500

-0.01%

+4.50%

Polish zloty

4.3715

4.3720

+0.01%

-3.57%

Romanian leu

5.2790

5.2790

+0.00%

-3.50%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2026

Prague

.PX

2709.99

2721.2700

-0.41%

+0.91%

Budapest

.BUX

148937.33

149155.36

-0.15%

+34.14%

Warsaw

.WIG20

4169.02

4175.75

-0.16%

+30.94%

Bucharest

.BETI

30491.26

31018.23

-1.70%

+24.77%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

4.4086

0.0227

+112bps

+4bps

Czech Rep 5-year

4.7477

0.0411

+133bps

+6bps

Czech Rep 10-year

5.3979

0.0141

+177bps

+3bps

Poland 2-year

5.0550

-0.2330

+177bps

-22bps

Poland 5-year

6.1080

-0.0270

+269bps

-1bps

Poland 10-year

6.4790

-0.0100

+285bps

+1bps

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