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CEE MARKETS-Forint 'frozen' near 22-month lows as currencies tread water
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CEE MARKETS-Forint 'frozen' near 22-month lows as currencies tread water
Nov 3, 2024 1:26 PM

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

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

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

********

(Additional reporting by Alan Charlish and Pawel Florkiewicz in

Warsaw Editing by Andrew Cawthorne)

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