CEE MARKETS-Zloty falls to multi-year low as markets await Fed message

By Reuters News

- Central European currencies were pressured by higher oil and gas prices, with the Polish zloty falling to a multi-year low, as investors awaited a rate decision by the US Federal Reserve.

The Polish zloty eased 0.3% to 4.410 versus the euro — its weakest level since November 2023.

The upcoming decision by the US Federal Open Market Committee was "the most important event for the FX market," PKO Bank said in a note. It added that Fed Chair Kevin Warsh's hawkish tone "could further support the dollar, particularly against emerging market currencies, including the Polish złoty."

The US central bank is expected to hold interest rates steady on Wednesday as policymakers wait to see if inflation moderates or stays strong enough to warrant more hikes in borrowing costs.

The Hungarian forint , meanwhile, slipped 0.2% to trade at 367.25 to the euro.

"TTF natural gas, rising to the 95 euro level, is putting regional currencies under pressure," brokerage Equilor wrote in a note.

Hungary's currency is the most sensitive in the region to changes in energy prices due to its reliance on energy imports.

Oil prices rose over 1% on Wednesday after an attack on a refinery in Saudi Arabia, the world's top crude exporter, renewed concerns about supply risks because of conflicts in the Middle East.

Elsewhere, the Romanian leu edged down to trade at 5.35 per euro.

Stocks in the region were mixed, with Budapest's blue-chip index losing 0.8% while Warsaw edged up 0.04%.

Markets in the Czech Republic were closed for a holiday.


CEE MARKETS SNAPSHOT AT 1131 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2025

Czech crown

24.3690

24.3270

-0.17%

-0.83%

Hungary forint

367.2500

366.6000

-0.18%

+4.66%

Polish zloty

4.4100

4.3980

-0.27%

-4.41%

Romanian leu

5.3500

5.3490

-0.02%

-4.78%

Serbian dinar

117.4300

117.5200

+0.08%

-0.11%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2025

Prague

.PX

2638.23

2638.2300

+0.00%

-1.77%

Budapest

.BUX

145448.62

146629.75

-0.81%

+31.00%

Warsaw

.WIG20

4240.56

4238.38

+0.05%

+33.18%

Bucharest

.BETI

34636.81

34411.76

+0.65%

+41.73%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

4.3884

0.0050

+131bps

-2bps

Czech Rep 5-year

4.8103

-0.0097

+163bps

-3bps

Czech Rep 10-year

5.3704

-0.0180

+200bps

-3bps







Poland 2-year

4.9970

0.3300

+192bps

+30bps

Poland 5-year

6.0300

0.0240

+285bps

+0bps

Poland 10-year

6.4700

0.0400

+310bps

+3bps

FORWARD RATE AGREEMENTS

3x6

6x9

9x12

3M interbank

Czech Rep

,

4.31

4.66

4.86

3.95

Poland

,

4.24

4.61

4.81

3.91

Note: FRA quotes are for ask prices

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