CEE MARKETS-FX bounces back after fresh hit from Iran tensions
P10, INC. PX | 0.00 |
WARSAW, July 9 (Reuters) - Central European currencies firmed on Thursday, recovering ground after U.S. President Donald Trump shook markets the previous day by saying an interim agreement to end the war with Iran was "over".
The Hungarian forint EURHUF=, the most sensitive currency in the region to volatility caused by the Middle East conflict, fell sharply on Wednesday on fears of escalation, but its weaker levels began attracting buyers after the European close.
"The forint got a beating yesterday. Just like some other currencies, there was a big scare yesterday after it was clear that the Iran truce was over, the NATO summit really pressured the market, raising oil prices as well," said a currency trader in Budapest.
"There was a very strong technical level around 357.50 in the euro-forint rate and once that was broken, the door opened for further weakening. However, when it reached 360, some investors thought it was time to enter the game, alongside with some Hungarian companies that export that were waiting to sell their euros and 360 seemed like a good level."
The forint was trading at 358.40 per euro, 0.82% stronger than Wednesday's European close, with much of the strengthening having come on Wednesday evening.
In Poland, the zloty EURPLN= gained 0.15% to 4.3065 as investors awaited a press conference by National Bank of Poland (NBP) Governor Adam Glapinski.
The NBP left its main interest rate at 3.75% for the fourth month in a row on Wednesday, as its new macroeconomic forecasts showed the inflation path in Poland this year and next would be higher than previously indicated.
"(The) conference will be closely monitored, but in the current, highly uncertain geopolitical environment, we do not expect dovish overtones," PKO BP said in a note.
The Romanian leu EURRON=, tightly controlled by the central bank, was little changed at 5.2355 after the central bank held its benchmark interest rate at 6.5% as expected on Wednesday.
The Czech crown EURCZK= was 0.11% firmer at 24.2520.
"Higher Brent oil prices are a risk, but the temporary increase is relatively modest - the crown's link to oil was strongest during the hot phase of the conflict and then gradually eroded," bank CSOB said.
CEE MARKETS SNAPSHOT AT 1057 CET |
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CURRENCIES |
Latest trade |
Previous close |
Daily change |
Change in 2026 |
|
Czech crown |
EURCZK= |
24.2520 |
24.2780 |
+0.11% |
-0.35% |
Hungary forint |
EURHUF= |
358.4000 |
361.3500 |
+0.82% |
+7.24% |
Polish zloty |
EURPLN= |
4.3065 |
4.3130 |
+0.15% |
-2.11% |
Romanian leu |
EURRON= |
5.2355 |
5.2333 |
-0.04% |
-2.70% |
Serbian dinar |
EURRSD= |
117.2800 |
117.3600 |
+0.07% |
+0.02% |
Note: daily change calculated from 1800 CET |
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STOCKS |
Latest |
Previous close |
Daily change |
Change in 2026 |
|
Prague |
.PX |
2603.27 |
2592.5400 |
+0.41% |
-3.07% |
Budapest |
.BUX |
142321.92 |
140842.29 |
+1.05% |
+28.18% |
Warsaw |
.WIG20 |
3702.92 |
3672.54 |
+0.83% |
+16.30% |
Bucharest |
.BETI |
33906.37 |
33568.24 |
+1.01% |
+38.74% |
|
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BONDS |
Yield (bid) |
Yield change |
Spread vs Bund |
Daily change in spread |
|
Czech Rep 2-year |
CZ2YT=RR |
3.8688 |
0.0121 |
+120bps |
+5bps |
Czech Rep 5-year |
CZ5YT=RR |
4.1323 |
-0.0225 |
+135bps |
+1bps |
Czech Rep 10-year |
CZ10YT=RR |
4.6987 |
0.0042 |
+163bps |
+2bps |
Poland 2-year |
PL2YT=RR |
4.0950 |
-0.1700 |
+143bps |
-13bps |
Poland 5-year |
PL5YT=RR |
4.8220 |
-0.0770 |
+204bps |
-5bps |
Poland 10-year |
PL10YT=RR |
5.4100 |
-0.0360 |
+234bps |
-2bps |
|
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FORWARD RATE AGREEMENTS |
3x6 |
6x9 |
9x12 |
3M interbank |
|
Czech Rep |
CZKFRA, PRIBOR= |
4.00 |
4.14 |
4.18 |
3.81 |
Poland |
PLNFRA, WIBOR= |
3.82 |
3.83 |
3.84 |
3.83 |
Note: FRA quotes are for ask prices |
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