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CEE MARKETS-Forint falls to 18-month low, passing big barrier
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CEE MARKETS-Forint falls to 18-month low, passing big barrier
Oct 2, 2024 11:02 PM

(Changes dateline, updates with forint low, trader quote,

Polish rate decision)

BUDAPEST, Oct 2 (Reuters) - The Hungarian forint fell to

its weakest against the euro in 18 months on Wednesday as

tensions in the Middle East made investors risk-averse, hitting

central Europe's currencies.

The zloty, the best performer in the region this year,

also eased as the Polish central bank left its base rate

unchanged, as expected, with inflation inching upward.

In Hungary, the forint fell past the psychological

level of 400 and traded down 0.6% at 400.45 per euro at 1328

GMT.

"There is a general negative mood in markets due to what

is happening in the Middle East, and investors will watch if it

escalates further. Global events and the strength of the dollar

determine everything now," an FX trader in Budapest said.

"And the forint is always the weakest link in central

Europe."

The dollar held on to its biggest gains in a week on

Wednesday after an Iranian missile attack on Israel.

Elsewhere, the Czech crown was 0.3% lower to

the euro at 25.364 to the euro, sitting around lows from early

August.

Falling interest rates in Hungary and the Czech Republic

have put pressure on those countries' currencies, while the

zloty has been supported as the Polish central bank paused rate

cuts for the past year.

The zloty is still within sight of multi-year highs hit

earlier this year.

The zloty was 0.1% weaker at 4.296 against the

euro, nearing the psychological 4.30 level it has remained below

since mid-September.

CEE SNAPSHOT AT

MARKETS 1528

CET

CURRENCIES

Latest Previo Daily Change

us

trade close change in 2024

Czech 0

Hungary 00

Polish Romania Serbian 00

Note: calculated from 1800 CET

daily

change

Latest Previo Daily Change

us

close change in 2024

Prague 1597.70 1604.5 -0.43% +12.99

300 %

Budapes 73148.81 74189. -1.40% +20.67

t 72 %

Warsaw 6

Buchare 17448.31 17568. -0.68% +13.51

st 14 %

Spread Daily

vs Bund change

in

Czech spread

Republi

c

0

Poland

0

FORWARD RATE

AGREEMENTS

3x6 6x9 9x12 3M

interba

nk

Czech Hungary Poland Note: are for ask prices

FRA

quotes

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

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

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