CEE MARKETS-FX steadies with focus on Middle East, rate outlook

By Reuters News

- Central European currencies hovered above recent lows on Friday, as investors' attention remained fixed on the Middle East and on the monetary policy outlook.

  • US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said

  • The Hungarian forint recovered somewhat after the previous day's losses, firming 0.62% versus the euro to 364.25

  • "We are still in the weaker territory...It's all driven by the geopolitical circumstances," said Miklos Kolba, senior corporate sales dealer at ING in Hungary

  • Polish Central banker Ludwik Kotecki reiterated on TOK FM radio that a rate hike this year was possible if forecasts showed inflation becoming entrenched, while the Czech central bank said it could also raise rates a little further

  • The Polish zloty was 0.17% firmer against the euro at 4.3745, after falling to its weakest level since January 2024 on Thursday

  • "With no domestic data releases scheduled for Friday, the zloty will continue to be driven primarily by external factors," PKO BP said in a note

  • The Czech crown was hovering just above a 5-month low, firming 0.08% to 24.39, while the Romanian leu was 0.10% firmer at 5.273

CEE MARKETS SNAPSHOT AT 1057 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2026

Czech crown

24.3900

24.4090

+0.08%

-0.92%

Hungary forint

364.2500

366.5000

+0.62%

+5.52%

Polish zloty

4.3745

4.3821

+0.17%

-3.63%

Romanian leu

5.2730

5.2781

+0.10%

-3.39%

Serbian dinar

117.3400

117.4000

+0.05%

-0.03%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2026

Prague

.PX

2730.25

2723.7900

+0.24%

+1.66%

Budapest

.BUX

151869.14

151507.86

+0.24%

+36.78%

Warsaw

.WIG20

4187.81

4192.90

-0.12%

+31.53%

Bucharest

.BETI

31685.36

31314.93

+1.18%

+29.65%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

4.3859

0.0417

+112bps

+6bps

Czech Rep 5-year

4.7159

0.0131

+132bps

+4bps

Czech Rep 10-year

5.3672

-0.0025

+178bps

+2bps

Poland 2-year

4.8750

-0.0090

+161bps

+1bps

Poland 5-year

6.0040

-0.0040

+261bps

+2bps

Poland 10-year

6.3750

0.0010

+278bps

+2bps

FORWARD RATE AGREEMENTS

3x6

6x9

9x12

3M interbank

Czech Rep

,

4.36

4.73

5.00

3.85

Poland

,

4.33

4.78

4.96

3.83

Note: FRA quotes are for ask prices

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