BUDAPEST — Most central European
currencies and stocks weakened on Monday, as a global negative
market mood and a strengthening dollar put pressure on assets in
the region with the Hungarian forint trading near its historic
lows versus the euro.
Soaring U.S. inflation data released on Friday fueled bets
that the U.S. Federal Reserve, which will meet on Wednesday,
could get more aggressive and deliver a bigger-than-expected
rate hike, which weighed on stocks and boosted the dollar.
Stocks in Warsaw were 2.26% lower, while Prague’s
index was down 1.35%. Budapest’s equities were
The forint was up 0.2% on the day at 397.30 per
euro after falling to 399.65 earlier in the morning, a
three-month low, and a whisker away from its historic low of
“This sour international mood caught the forint at a time
when it was very weak already, and if that continues, it could
weaken past 400,” an FX trader in Budapest said.
“The high (budget) deficit, the low level of FX reserves and
the slowing of the central bank’s rate hikes will continue to
pressure the forint… the lack of good news about EU funds is
also not helping either.”
The forint has been the worst performer among its regional
peers so far in 2022, losing about 7% versus the euro so far.
Elsewhere, the Polish zloty slid 0.24% to 4.6300
per euro as central banker Rafal Sura told Reuters the Monetary
Policy Council (MPC) could bring down the size of its next hike
in borrowing costs to 50 basis points in July.
This makes Sura the first MPC member to signal a less
hawkish stance after Governor Adam Glapinski also said last week
that Poland was approaching the end of its tightening cycle.
The Czech crown was flat after Central Bank
Governor Jiri Rusnok was quoted as saying by Pravo newspaper on
Saturday that the bank could raise its key interest rate by
50-100 basis points at its June 22 policy meeting.
“The market is fully pricing in a 125-bp hike with a
residual risk of more tightening coming in August, currently
close to one more “standard.”.. 25 bps. In this light, Rusnok’s
comments … appear very conservative,” Komercni Banka trader
Marek Lesko wrote in a note.
Markets in Bucharest were closed for a holiday on Monday.
CEE SNAPSH AT
MARKETS OT 1053
Latest Previo Daily Change
bid close change in
Note: calculated from 1800
Latest Previo Daily Change
close change in
.PX Prague 1297.5 1315.2 -1.35%
.BUX Budapes 38045. 38950. -2.32% -24.99
t 85 67 %
.WIG20 Warsaw <.wig20> 5 8 %
.BETI Buchare 12354. 12354. +0.00 -5.41%
st 35 35 %
.SBITO Ljublja <.sbito p na> 1 5
.CRBEX Zagreb <.crbex> 0 9
.BELEX Belgrad <.belex e> %
.SOFIX Sofia <.sofix>
Yield Yield Spread Daily
(bid) change vs change
3×6 6×9 9×12 3M
Note: are for ask
(Additional reporting by Jason Hovet in Prague and Anna
Wlodarczak-Semczuk in Warsaw; Editing by Shailesh Kuber)