CEE MARKETS-Hungary's forint rebounds from four-week low
PRAGUE, Sept 30 (Reuters) - Hungary's forint rebounded from a four-week low on Wednesday, leading central Europe's currencies higher, as markets found slight relief from a US dollar rally this month that has put the region on a weakening path.
The forint had gained 0.4% to 365.80 per euro by 0821 GMT.
It has stagnated the past two months, with weaker global sentiment counterbalanced by the pro-European stance of Prime Minister Peter Magyar, who took power in May and put euro adoption back on the agenda.
In Poland, the zloty was up 0.2% at 4.3645 to the euro, but was set for a fourth straight monthly loss.
Data on Wednesday showed Polish inflation accelerated this month to 4.0% from 3.4%, supporting growing expectations of interest rate rises in the coming months.
But analysts said the rates outlook was not currently the main driver for the zloty, which has been caught in global sentiment swings like others in central Europe.
"The global situation also remains in relative balance. Ultimately, we maintain our position of EURPLN remaining close to 4.37," Polish state development bank BGK said.
The dollar stood near this year's high against the euro, central Europe's main reference currency, and was set for its biggest monthly rise against it in 14 months, powered by US growth and rising US interest rates, in contrast to energy and debt worries in Europe.
The Czech crown was up a touch at 24.42 per euro in mid-morning trade, hovering around a more than five-month low. It was set for a 1% drop in September, its biggest monthly fall since March.
Czech markets have also priced in more rate increases after the central bank's hike in June to tackle domestic inflationary pressures.
"A combination of a strong dollar, a sell-off in global bond markets, and high energy prices is weighing on the currency, and we see room for further losses in the short term," Czech bank CSOB said in a trade note. "At the same time, the weak crown itself could serve as an argument for further monetary policy tightening at the CNB's November meeting, as it drives up import costs and amplifies the impact of high energy prices."
CEE MARKETS SNAPSHOT AT 1021 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2026 | |
Czech crown | 24.4200 | 24.4350 | +0.06% | -1.04% | |
Hungary forint | 365.8000 | 367.3000 | +0.41% | +5.08% | |
Polish zloty | 4.3645 | 4.3725 | +0.18% | -3.41% | |
Romanian leu | 5.2790 | 5.2790 | +0.00% | -3.50% | |
Serbian dinar | 117.4000 | 117.5000 | +0.09% | -0.09% | |
Note: daily change calculated from 1800 CET | |||||
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STOCKS | Latest | Previous close | Daily change | Change in 2026 | |
Prague | .PX | 2701.16 | 2694.3300 | +0.25% | +0.58% |
Budapest | .BUX | 146442.28 | 147128.86 | -0.47% | +31.89% |
Warsaw | .WIG20 | 4195.86 | 4157.40 | +0.93% | +31.78% |
Bucharest | .BETI | 30794.70 | 30829.30 | -0.11% | +26.01% |
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BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | 4.3500 | -0.0204 | +113bps | +3bps | |
Czech Rep 5-year | 4.6610 | -0.0495 | +132bps | +2bps | |
Czech Rep 10-year | 5.3361 | -0.0301 | +178bps | +3bps | |
Poland 2-year | 4.9140 | -0.1180 | +169bps | -6bps | |
Poland 5-year | 5.9750 | -0.1530 | +263bps | -9bps | |
Poland 10-year | 6.3630 | -0.0910 | +281bps | -3bps | |
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FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | , | 4.31 | 4.63 | 4.83 | 3.87 |
Poland | , | 4.32 | 4.79 | 4.95 | 3.85 |
Note: FRA quotes are for ask prices | |||||