CEE MARKETS-Currencies edge lower as lockdown measures weigh on economies

Credit: REUTERS/David W Cerny

Most Central European currencies edged lower on Tuesday as markets eyed government reactions to rising coronavirus infections and waited to see whether the European Central Bank would announce more easing measures later this week.

By Anita Komuves

BUDAPEST, Oct 27 (Reuters) - Most Central European currencies edged lower on Tuesday as markets eyed government reactions to rising coronavirus infections and waited to see whether the European Central Bank would announce more easing measures later this week.

Governments in central Europe are trying to avoid the harshest lockdown measures and want to keep industry running to protect their economies, which suffered during the first wave of coronavirus in the spring.

"Investors are waiting to see how badly the second wave will hit the region," a Budapest-based FX trader said. "Even with looser lockdown measures than in the spring, economies will be affected as Christmas fairs are being cancelled and factories could shut down for a bit longer than usual."

The Hungarian forint EURHUF= held stable, trading at 365.110 versus the euro.

The Czech crown EURCZK= slid 0.14% to 27.358 per euro, weakening toward recent lows hit earlier this month after the government ordered a 9 p.m. curfew and limited retail sales on Sundays.

"If the lockdown was to be intensified again soon, EUR-CZK might return to the highs seen in spring," Commerzbank wrote.

The Czech National Bank will not "sit idle" if the crown depreciated too much, although that is not expected, Governor Jiri Rusnok said on Tuesday.

The Polish zloty EURPLN= eased 0.28% and was trading at 4.5880 versus the euro. The country introduced new restrictions last week, closing bars and restaurants, to stop the rapid spread of new coronavirus cases.

Polish Prime Minister Mateusz Morawiecki said on Tuesday that the government plans to use 1.8 billion to 2 billion zlotys ($980.82 million) to support businesses forced to close.

Stock markets in the region recovered some of their losses on Tuesday after weakening in the global risk-off mood the day before, but sentiment remained fragile.

Warsaw's equities .WIG20 led gains, rising 0.67% by 0939 GMT. Budapest's stocks .BUX edged up 0.05% and Prague's blue- chip index .PX strengthened 0.32%. Bucharest .BETI slid 0.07%.

CEE MARKETS

SNAPSHOT

AT 1039 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

27.3580

27.3200

-0.14%

-7.04%

EURHUF=

Hungary forint

EURHUF=

365.1100

365.1500

+0.01%

-9.30%

EURPLN=

Polish zloty

EURPLN=

4.5880

4.5750

-0.28%

-7.23%

EURRON=

Romanian leu

EURRON=

4.8735

4.8725

-0.02%

-1.75%

EURHRK=

Croatian kuna

EURHRK=

7.5750

7.5785

+0.05%

-1.71%

EURRSD=

Serbian dinar

EURRSD=

117.5000

117.6000

+0.09%

+0.06%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

863.01

860.2700

+0.32%

-22.64%

.BUX

Budapest

.BUX

33030.18

33012.62

+0.05%

-28.32%

.WIG20

Warsaw

.WIG20

1642.55

1631.66

+0.67%

-23.61%

.BETI

Bucharest

.BETI

8744.49

8750.75

-0.07%

-12.36%

.SBITOP

Ljubljana

.SBITOP

802.93

808.82

-0.73%

-13.28%

.CRBEX

Zagreb

.CRBEX

1587.63

1589.06

-0.09%

-21.30%

.BELEX15

Belgrade

.BELEX15

688.87

692.37

-0.51%

-14.07%

.SOFIX

Sofia

.SOFIX

428.55

429.72

-0.27%

-24.57%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.0370

-0.0120

+079bps

-1bps

CZ5YT=RR

5-year

CZ5YT=RR

0.5810

-0.0130

+136bps

+0bps

CZ10YT=RR

10-year

CZ10YT=RR

1.0110

-0.0300

+160bps

-2bps

Poland

PL2YT=RR

2-year

PL2YT=RR

-0.0250

-0.0260

+073bps

-2bps

PL5YT=RR

5-year

PL5YT=RR

0.4560

-0.0160

+123bps

+0bps

PL10YT=RR

10-year

PL10YT=RR

1.2100

-0.0070

+180bps

+1bps

FORWARD

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.27

0.23

0.25

0.35

Hungary

HUFFRABUBOR=

0.93

0.97

1.00

0.77

Poland

PLNFRAWIBOR=

0.18

0.15

0.13

0.22

Note: FRA quotes

are for ask prices

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

($1 = 3.8743 zlotys)

(Additional reporting by Jason Hovet in Prague, editing by Larry King)

((komuves.anita@thomsonreuters.com (+36 70 795 8815))

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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