CEE MARKETS-Slipping dollar boosts FX
WARSAW, Oct 16 (Reuters) - 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 | |||||
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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% |
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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 | |
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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 | |||||