CEE MARKETS-Crown touches 4-1/2 month high as dollar wilts

Credit: REUTERS/DAVID W CERNY

Central Europe's currencies firmed to multi-week highs on Monday, with the Czech crown at its strongest since mid-March as a weaker dollar boosted the market.

PRAGUE, July 27 (Reuters) - Central Europe's currencies firmed to multi-week highs on Monday, with the Czech crown at its strongest since mid-March as a weaker dollar boosted the market.

Currencies kept up gains seen since last week, lifted by a spike in the euro - the region's main reference currency - against the dollar, dealers said.

The crown firmed to its strongest against the euro since March 13, when the novel coronavirus outbreak started hammering central European markets. However, some dealers said more resistance could be seen ahead at current levels.

The crown EURCZK= traded up 0.25% at 26.203 to the euro at 0921 GMT, while the Polish zloty EURPLN= led gains with a 0.3% rise and was at 4.4007 to the euro after earlier touching 4.4000, its highest since June 3.

"Euro/dollar is on the top, gold is on the top. I don't think there is too much space for a bigger move (from here)," a Prague-based dealer said.

Stocks and currencies in the region were lifted last week by the European Union's 750-billion-euro coronavirus recovery package, which would see healthy portions sent to Poland, Hungary and Romania.

The Hungarian forint EURHUF= gained 0.2% to 345.90 to the euro, having firmed past key levels last week. Equilor analysts said the 342-343 level, at which the forint last traded in the first half of June, would be the next key point.

The region's stock markets moved mostly sideways, with Warsaw .WIG20 and Prague .PX up as much as 0.25% and Budapest .BUX down 0.2%.

Debt markets were mixed. Fitch ratings agency affirmed the Czech Republic at 'AA-' on Friday evening and left a stable outlook.

Raiffeisen said though that S&P's downgrade for Slovakia to a negative outlook could put pressure on the rest of the region.

CEE MARKETS

SNAPSHOT

AT 1121 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

26.2030

26.2690

+0.25%

-2.94%

EURHUF=

Hungary forint

EURHUF=

345.9000

346.4800

+0.17%

-4.27%

EURPLN=

Polish zloty

EURPLN=

4.4007

4.4147

+0.32%

-3.28%

EURRON=

Romanian leu

EURRON=

4.8270

4.8315

+0.09%

-0.80%

EURHRK=

Croatian kuna

EURHRK=

7.5160

7.5215

+0.07%

-0.94%

EURRSD=

Serbian dinar

EURRSD=

117.5200

117.6400

+0.10%

+0.04%

Note: daily change

calculated from

1800 CET

STOCKS

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

917.27

915.8700

+0.15%

-17.78%

.BUX

Budapest

.BUX

35024.96

35107.97

-0.24%

-24.00%

.WIG20

Warsaw

.WIG20

1814.88

1810.33

+0.25%

-15.59%

.BETI

Bucharest

.BETI

8589.19

8551.29

+0.44%

-13.91%

.SBITOP

Ljubljana

.SBITOP

852.08

852.29

-0.02%

-7.97%

.CRBEX

Zagreb

.CRBEX

1587.06

1595.26

-0.51%

-21.33%

.BELEX15

Belgrade

.BELEX15

653.74

663.56

-1.48%

-18.45%

.SOFIX

Sofia

.SOFIX

440.55

440.18

+0.08%

-22.46%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.1250

0.0900

+078bps

+9bps

CZ5YT=RR

5-year

CZ5YT=RR

0.4000

-0.0510

+106bps

-4bps

CZ10YT=RR

10-year

CZ10YT=RR

0.8520

0.0070

+132bps

+3bps

Poland

PL2YT=RR

2-year

PL2YT=RR

0.1290

-0.0030

+078bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

0.7590

-0.0110

+142bps

+0bps

PL10YT=RR

10-year

PL10YT=RR

1.3620

-0.0070

+183bps

+2bps

FRA

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.31

0.32

0.34

0.34

Hungary

HUFFRABUBOR=

0.60

0.60

0.59

0.60

Poland

PLNFRAWIBOR=

0.20

0.20

0.22

0.25

Note: FRA quotes are for ask prices

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

(Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; Editing by Jan Harvey)

((jason.hovet@thomsonreuters.com; +420 234 721 613;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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