CEE MARKETS-Zloty weakest since early 2024, crown slips as FX comes under pressure

By Reuters News

- Central European currencies slipped on Thursday, with Poland's zloty hitting its lowest level since the start of 2024 and the Czech crown touching a five-month low, as the US dollar rallied on energy market worries.

  • On bond markets, Romania's 10-year benchmark bond yield was bid at a one-year high of 7.66% as efforts to form a new government in Bucharest and uncertainty over the country's aims to cut high budget deficits increased investor caution.

  • Currencies have been mostly on the decline this month and are facing pressure from rising risk aversion connected to developments in the US-Iran conflict in the Middle East.

  • Analysts said markets were rattled by reports from website Politico that US President Donald Trump's administration was preparing plans for a 90-day diesel export ban. However, the White House has denied this.

  • On Thursday, the zloty had fallen 0.3% to 4.3910 by 0854 GMT, trading off a session low of 4.401 — its weakest since January 2024.

  • The crown was steady at 24.401 per euro mid-morning and hit a session low of 24.440.

  • Hungary's forint traded 0.35% down at 366.25 per euro after hitting its strongest level for September — at 359.85 — this week. Gains were initially supported by the central bank's decision to keep interest rates unchanged and raise its inflation forecasts.

  • The forint has been a clear outperformer this year, with good sentiment still helping it since Peter Magyar's centre-right government took power in May and ended nationalist Viktor Orban's 16-year rule.

  • Bond yields have also been falling in Hungary, with appetite boosted by the state's aims of euro adoption.

  • Other benchmark yields in central Europe have been rising and are at one-year or multi-year highs.

CEE MARKETS SNAPSHOT AT 1054 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2026

Czech crown

24.4010

24.4100

+0.04%

-0.96%

Hungary forint

366.2500

364.9500

-0.35%

+4.95%

Polish zloty

4.3910

4.3770

-0.32%

-3.99%

Romanian leu

5.2770

5.2770

+0.00%

-3.47%

Serbian dinar

117.4100

117.4600

+0.04%

-0.09%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2026

Prague

.PX

2722.59

2729.6200

-0.26%

+1.38%

Budapest

.BUX

151974.41

152002.25

-0.02%

+36.87%

Warsaw

.WIG20

4179.64

4186.63

-0.17%

+31.27%

Bucharest

.BETI

31172.67

31683.03

-1.61%

+27.55%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

4.3299

0.0801

+104bps

+7bps

Czech Rep 5-year

4.7051

0.0962

+131bps

+9bps

Czech Rep 10-year

5.3725

0.0985

+180bps

+7bps

Poland 2-year

5.1360

0.1140

+184bps

+11bps

Poland 5-year

6.0400

0.1390

+264bps

+13bps

Poland 10-year

6.4170

0.1220

+285bps

+10bps

FORWARD RATE AGREEMENTS

3x6

6x9

9x12

3M interbank

Czech Rep

,

4.35

4.76

4.80

3.85

Poland

,

4.35

4.79

4.96

3.86

Note: FRA quotes are for ask prices

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