CEE MARKETS-Most currencies fall as fears of second coronavirus wave weigh

Credit: REUTERS/BERNADETT SZABO

Most Central European currencies slipped on Thursday, as mounting worries about a second wave of the coronavirus sapped risk appetite across the globe.

WARSAW, Oct 15 (Reuters) - Most Central European currencies slipped on Thursday, as mounting worries about a second wave of the coronavirus sapped risk appetite across the globe.

The region has seen soaring infections, with the Czech Republic, which has Europe's fastest growing infection rates, reporting a record high number of cases on Thursday along with Poland.

"I think that the main reason is that the economic prospects of the region have dimmed recently due to the COVID-19 pandemic," said Piotr Bartkiewicz, an economist at Pekao in Warsaw.

"Since investors are anticipating that western European economies will slow down the currencies here need to compensate for the reduced demand."

At 0838 GMT the Polish zloty EURPLN= was 0.70% weaker against the euro at 4.5490, the Czech crown EURCZK= was 0.22% softer at 27.32 and the Hungarian forint EURHUF= lost 0.73% to trade at 365.30.

The Romanian leu EURRON= was little changed at 4.8760.

In Hungary, investors were eyeing a one-week deposit tender of the central bank due later in the day, which according to a morning note by Equilor, "could cause intensive movements in the exhange rate of the forint."

The forint could weaken ahead of the tender, as traders might try and force the central bank to raise the interest rate on the one-week deposit facility, analysts had said before.

The bank raised the interest rate on the facility NBHK by 15 basis points to 0.75% on Sept. 24 to prevent an increase in inflation risks, but has kept rates at this level since.

Thursday's interest rate decision will be announced at 0950 GMT, with results of the tender due at 1300 GMT.

Stock indices across Europe fell on pandemic fears and fading hopes of fresh U.S. stimulus. In the CEE region, the main indices in Prague .PX, Budapest .BUX and Warsaw .WIG20 were down between 1.5% and 1.9%.

CEE MARKETS

SNAPSHOT

AT 1038 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

27.3200

27.2600

-0.22%

-6.91%

EURHUF=

Hungary forint

EURHUF=

365.3000

362.6500

-0.73%

-9.35%

EURPLN=

Polish zloty

EURPLN=

4.5490

4.5170

-0.70%

-6.43%

EURRON=

Romanian leu

EURRON=

4.8760

4.8770

+0.02%

-1.80%

EURHRK=

Croatian kuna

EURHRK=

7.5830

7.5785

-0.06%

-1.81%

EURRSD=

Serbian dinar

EURRSD=

117.5000

117.5800

+0.07%

+0.06%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

856.11

872.9400

-1.93%

-23.26%

.BUX

Budapest

.BUX

32982.79

33496.67

-1.53%

-28.43%

.WIG20

Warsaw

.WIG20

1640.09

1670.26

-1.81%

-23.72%

.BETI

Bucharest

.BETI

8848.65

8880.06

-0.35%

-11.31%

.SBITOP

Ljubljana

.SBITOP

831.71

835.41

-0.44%

-10.17%

.CRBEX

Zagreb

.CRBEX

1607.97

1611.72

-0.23%

-20.30%

.BELEX15

Belgrade

.BELEX15

689.46

690.70

-0.18%

-14.00%

.SOFIX

Sofia

.SOFIX

425.49

425.96

-0.11%

-25.11%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.1020

0.0210

+087bps

+5bps

CZ5YT=RR

5-year

CZ5YT=RR

0.5680

-0.0400

+137bps

+0bps

CZ10YT=RR

10-year

CZ10YT=RR

1.0430

0.0280

+167bps

+8bps

Poland

PL2YT=RR

2-year

PL2YT=RR

-0.0170

-0.0360

+075bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

0.4690

-0.0230

+127bps

+2bps

PL10YT=RR

10-year

PL10YT=RR

1.2460

-0.0230

+187bps

+3bps

FORWARD

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.27

0.26

0.29

0.35

Hungary

HUFFRABUBOR=

0.93

0.98

0.98

0.77

Poland

PLNFRAWIBOR=

0.17

0.16

0.15

0.22

Note: FRA quotes

are for ask prices

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

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(Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Rashmi Aich)

((alan.charlish@thomsonreuters.com; +48 22 104 25 27 ;))

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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