CEE MARKETS-Slipping dollar boosts FX

By Reuters News

- Central European currencies found support in a slipping dollar on Friday, with the forint leading gains ahead of an expected "hold" decision on interest rates from the Hungarian central bank next week.

  • Hungary's central bank is widely seen leaving its base rate steady at 5.5% HUINT=ECI next Tuesday, with no clarity yet on the 2027 budget, seen as a pivotal factor in anchoring market optimism about the country’s bid to adopt the euro.

  • The National Bank of Hungary (NBH) paused a string of rate cuts last month, when it lowered its inflation target to 2.5% from 3% as Hungary prepares to meet the terms of joining the single European currency.

  • The Hungarian forint traded up 0.14% against the euro to 363.10 by 0830 GMT.

  • Data on Friday showed Hungary's gross average wage growth HUWAGE=ECI accelerated to an annual 8.4% in August from a 7.5% increase in July.

  • Polish zloty edged 0.08% higher to 4.3670 per euro.

  • Continued pressure on the dollar would support a corrective firming of the zloty, with the possibility of it testing local support close to 4.36 per euro, economists at Polish bank PKO BP said.

  • Poland’s statistics office on Friday revised the country’s gross domestic product for the second quarter of 2026 to 4.1% year-on-year from 3.9%. It also revised the first-quarter GDP to 3.7% from 3.5%.

  • The Czech crown was steady at 24.3470 per euro, holding gains made earlier this week and trading at its strongest since late September.

CEE MARKETS SNAPSHOT AT 1030 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2025

Czech crown

24.3470

24.3450

-0.01%

-0.74%

Hungary forint

363.1000

363.6000

+0.14%

+5.86%

Polish zloty

4.3670

4.3705

+0.08%

-3.47%

Romanian leu

5.3370

5.3360

-0.02%

-4.55%

Serbian dinar

117.3500

117.4200

+0.06%

-0.04%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2025

Budapest

.BUX

145126.96

144454.77

+0.47%

+30.71%

Warsaw

.WIG20

4233.86

4208.42

+0.60%

+32.97%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

4.3076

0.0524

+125bps

+7bps

Czech Rep 5-year

4.6393

0.0108

+146bps

+2bps

Czech Rep 10-year

5.2450

-0.0120

+183bps

-2bps

Poland 2-year

4.7220

0.0010

+166bps

+2bps

Poland 5-year

5.8600

-0.0580

+268bps

-5bps

Poland 10-year

6.2670

-0.0220

+285bps

-3bps

FORWARD RATE AGREEMENTS

3x6

6x9

9x12

3M interbank

Czech Rep

,

4.29

4.63

4.78

3.91

Poland

,

4.26

4.61

4.77

3.88

Note: FRA quotes are for ask prices

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