CEE MARKETS-Forint hits 3-month high on rate hike hopes, other currencies muted

By Anita Komuves BUDAPEST, Jan. 11 (Reuters) – The Hungarian forint strengthened to a three-month high on Tuesday, supported by the prospect of higher interest rates, while other central European currencies have moved little. The forint, which underperformed its regional peers last year, rose 0.2% to 357.70 against the euro, testing its 200-day moving average in an opening rally of ‘year. The currency has gained more than 3% so far in 2022. “Yesterday the 200-day moving average of around 357.50 stopped the forint’s strengthening, it turned out to be too strong … so it could stay around from the 360 ​​level for a while, “said an FX trader in Budapest. “The next big trigger for regional currencies could be the expected start of Fed rate hikes.” Investors were eyeing the testimony of U.S. Federal Reserve Chairman Jerome Powell at a congressional hearing later today, looking for clues as to when the bank should tighten. EEC currencies started this year on a strong note, with traders expecting central banks to continue tightening policies to fight inflation, although a stronger dollar could add pressure on the market. the region. The Romanian leu was flat a day after the central bank raised its policy rate by 25 basis points to 2.00%, as expected. “Romania’s central bank lags behind its regional neighbors in monetary policy,” Commerzbank wrote. “However, the central bank will likely try to soften the depreciation of the leu, as a weak currency could fuel inflation more.” Elsewhere, the Czech koruna was up 0.05% and traded at 24.342 per euro while the Polish zloty slipped 0.03% to 4.5430. Shares in the region rose, with Warsaw leading the gains adding 1.93%. EEC SNAPSHOT ON OT 1132 CET CURREN CIES MARKETS Last previous change Daily offer closing change in 2022 EURCZK Czech 0% EURHUF Hungary 00 0% EURPLN Polish EURRON Romania% EURHRK Croatia% EURRSD Serbian 00 0% Note: calculated from of 1800 daily change CET Last Change of previous closing in 2022 .PX Prague 1431.6 1421.27 +0.73 N / A 2 00% .BUX Budapes 52815. 52 416.0 +0.76 + 4.13% t 46 1% .WIG20 Warsaw <.wig20> 1% .BETI Buchare 13259. 13223.7 +0.27 +1.52% st 57 8% .SBITO Ljublja <.sbito p na> 9% .CRBEX Zagreb <.crbex> 0 .BELEX Belgrad <.belex e> % .SOFIX Sofia <.sofix> Yield Yield Spread Daily (bid) change vs change Bund Czech spread Republi c CZ2YT = ps CZ5YT = ps CZ10YT ps Poland PL2YT = ps PL5YT = ps PL10YT ps FORWARD 3×6 6×9 9×12 3M interbank Czech Hungary Poland Note: are for requesting quotes FRA * ************** ************ *************** ********** *********** (Report by Anita Komuves in Budapest; Edited by Ramakrishnan M.)

Comments are closed.