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Currencies halt losses as they look for new impulses



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Currencies halt losses as they look for new impulses</title></head><body>

By Anita Komuves

BUDAPEST, Oct 8 (Reuters) -Central European currencies edged up on Tuesday but kept hovering near recent lows as they were waiting for new impulses after a weakening that started last week when a stronger dollar put pressure on emerging markets.

The Hungarian forint EURHUF= firmed 0.26% to trade at 401.1 per euro, still trading at an 18-month low and on the weaker side of the psychological level of 400.

"There is a bit of a calm on the market now after the big move, the weakening came to a halt and now we are waiting for the next step," an FX trader in Budapest said.

"From a technical point of view, a correction is due, but whether that materializes depends on what happens in the world."

Currencies in central Europe have been impacted in the past week by Middle East tensions dampening risk appetite.

On Friday, a better-than-expected U.S. jobs report reduced bets of outsized Federal Reserve rate cuts, leaving central Europe once again under pressure from the dollar.

This week, investors were eyeing inflation data due later in the week both in Europe and the United States.

The crown EURCZK= also firmed, and was up 0.15% on the day, trading at 25.333 versus the common currency, but still at its lowest levels since early August.

Elsewhere, the Polish zloty EURPLN= edged up 0.08% to 4.3205 per euro, near a three-month low that it hit in the previous session, breaking out of the tight range that it traded in for about two months.

"The level of PLN 4.33 per EUR should put an end to the current round of weakening of the Polish currency," Bank Millennium wrote in a note.

"This week should not provide any new information that could allow for the continuation of "playing" the current market scenario (stronger dollar). As a result, the pressure to weaken the złoty should also fade," they added.

Stocks in the region fell, with Warsaw's .WIG20 blue chip index leading losses as it was down 0.73%.





CEE MARKETS

SNAPSHOT

AT 1052 CET






CURRENCIES







Latest

Previous

Daily

Change




trade

close

change

in 2024

EURCZK=

Czech crown

EURCZK=

25.3330

25.3700

+0.15%

-2.49%

EURHUF=

Hungary forint

EURHUF=

401.1000

402.1500

+0.26%

-4.47%

EURPLN=

Polish zloty

EURPLN=

4.3205

4.3240

+0.08%

+0.56%

EURRON=

Romanian leu

EURRON=

4.9775

4.9775

+0.00%

-0.06%

EURRSD=

Serbian dinar

EURRSD=

116.9900

117.0300

+0.03%

+0.22%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2024

.PX

Prague

.PX

1591.69

1593.7600

-0.13%

+12.56%

.BUX

Budapest

.BUX

73773.20

74032.43

-0.35%

+21.70%

.WIG20

Warsaw

.WIG20

2274.89

2291.51

-0.73%

-2.91%

.BETI

Bucharest

.BETI

17608.29

17748.15

-0.79%

+14.55%













Spread

Daily






vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

3.2860

-0.0120

+106bps

+0bps

CZ5YT=RR

5-year

CZ5YT=RR

3.6120

-0.0240

+150bps

-2bps

CZ10YT=RR

10-year

CZ10YT=RR

3.9100

-0.0390

+166bps

-4bps


Poland






PL2YT=RR

2-year

PL2YT=RR

4.8840

-0.0160

+266bps

+0bps

PL5YT=RR

5-year

PL5YT=RR

5.1510

-0.0530

+304bps

-5bps

PL10YT=RR

10-year

PL10YT=RR

5.4550

-0.0580

+321bps

-6bps










FORWARD RATE AGREEMENTS







3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

3.70

3.42

3.27

4.17


Hungary

HUFFRABUBOR=

6.10

5.84

5.58

6.31


Poland

PLNFRAWIBOR=

5.76

5.41

4.85

5.85


Note: FRA quotes

are for ask prices





**************************************************************






Additional reporting by Pawel Florkiewicz in Warsaw; Editing by Janane Venkatraman

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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