By Krisztina Than
BUDAPEST, Oct 29 (Reuters) - Central Europe's currencies
were steady on Tuesday, with the Hungarian forint stuck near
22-month lows to the euro and the zloty easing as uncertainty
about the U.S. presidential election and a firmer dollar weighed
on the region's currencies.
"There is a slightly stronger dollar and the zloty is being
sold, along with other CEE currencies... it's a reaction to the
upcoming U.S. elections," said a Warsaw-based FX trader.
The dollar has been supported by anticipation that Donald
Trump could win a second term as U.S. president, as his tax and
tariff policies are seen as inflationary, which markets expect
could keep U.S. rates high.
Hungary's forint, which has been the region's
laggard with a 5.2% fall so far this year, was largely unchanged
at 404.35 per euro at 0720 GMT.
"The forint is frozen, it could not firm past 404 to the
euro in a lasting way yesterday as it moved in tandem with the
zloty," brokerage Equilor said in a note.
Traders said macro data from the U.S. and also the eurozone
later this week could move currency markets which were also
trying to price in the Nov. 5 election in the United States.
"All in all, we anticipate a volatile week in terms of
exchange rate movements," analysts at MHB Bank in Budapest said,
adding that Hungarian yields also edged higher on Monday.
Investors are also waiting to see third-quarter GDP data
from Hungary and the Czech Republic due on Wednesday, which
could provide clues on the state of the economic recovery that
has sputtered this year.
"This year is only the beginning of the healing process, as
both consumer and business confidence (local and global) are
limiting the Hungarian economy," ING analyst Peter Virovacz said
in a note. "While consumption is already on the rise,
investments have fallen off a cliff."
In Poland, the government is due to discuss amendments to
the 2024 budget on Tuesday.
The zloty was 0.1% weaker at 4.3535 per euro.
"The złoty is weakening, although it must be admitted that
the scale of depreciation remains quite limited...the level of
PLN 4.37 per EUR remains an important technical level that can
stop the pressure on the złoty," Bank Millennium said.
CEE SNAPSHOT AT
MARKETS 0918 CET
CURRENCI
ES
Latest Previous Daily Change
trade close change in 2024
EURCZK= Czech EURHUF= Hungary %
EURPLN= Polish EURRON= Romania EURRSD= Serbian %
Note: calculat 1800
daily ed from CET
change
Latest Previous Daily Change
close change in 2024
.PX Prague 1655.89 1647.720 +0.50 +17.11
0 % %
.BUX Budapes 74309.18 74122.77 +0.25 +22.58
t % %
.WIG20 Warsaw 2249.70 2245.79 +0.17 -3.98%
%
.BETI Buchare 17498.29 17372.05 +0.73 +13.84
st % %
Spread Daily
vs change
Bund in
Czech spread
Republi
c
CZ2YT=R ps
CZ5YT=R ps
CZ10YT= ps
Poland
PL2YT=R ps
PL5YT=R ps
PL10YT= ps
FORWARD
RATE
AGREEMEN
TS
3x6 6x9 9x12 3M
interba
nk
Czech 3.80 3.52 3.36 4.08
Rep Hungary 6.91 6.82 6.72 6.43
Poland 5.71 5.26 4.86 5.86
Note: are for
FRA ask
quotes prices
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(Additional reporting by Alan Charlish and Pawel Florkiewicz in
Warsaw Editing by Andrew Cawthorne)