Czech crown retreats past 24/euro, forint stays hot
PRAGUE — The Czech crown retreated
beyond the psychological 24 per euro level on Thursday, pulling
back from a 12-year high, while Hungary’s forint continued to
test four-month peaks as central European currencies stayed
positive to start the new year.
Stock markets also rose on Thursday, adding to 2%-4% gains
posted so far in the first week of 2023.
In international bond markets, Hungary issued a total of
$4.25 billion worth of dollar-denominated benchmark bonds,
Finance Minister Mihaly Varga said on Thursday.
In Poland, the zloty waited on central bank Governor Adam
Glapinski’s news conference after the monetary policy council
left interest rates unchanged on Wednesday, with expectations of
inflation soon slowing.
Markets have had a hot start to begin 2023 as easing gas
prices and China’s emergence from its strict “zero-COVID” rules
boost investor sentiment.
The crown on Wednesday breached 24 to the euro for
the first time since early 2011, but it pulled back on Thursday,
with some dealers thinking there is shrinking space for gains
with a looming recession.
It traded at 24.008, down 0.1% on the day, at 0946 GMT.
“Economic factors – current account development, an economy
likely in a mild recession, an expected drop in interest rates
already this year – should not be acting in this direction for
the crown,” Erste Group Bank said, adding early-year positioning
in the past also led to gains that could not be held.
The Hungarian forint traded at 395.25 to the euro,
up 0.2% and gaining already 1% in 2023, after falling the most
in central Europe in 2022.
Poland’s zloty fell 0.2% to 4.674 per euro.
Polish central bank arguments for stable interest rates were
bolstered by preliminary inflation data from December on
Thursday showing a headline rate of 16.6%, below a forecast of
But analysts said more attention was being paid to U.S.
monetary policy after Federal Reserve minutes.
“The global market is partially influenced by the
description from the last Fed meeting, which reiterated that
U.S. central bankers do not expect interest rate cuts in 2023,”
Bank Millennium said.
CEE SNAPSHO AT
MARKETS T 1046
Latest Previou Daily Change
bid close change in 2023
Note: calcula 1800
daily ted CET
Latest Previou Daily Change
close change in 2023
.PX Prague 1235.79 1230.06 +0.47% +2.83%
.BUX Budapest 45168.8 44937.0 +0.52% +3.14%
.WIG20 Warsaw <.wig20>
.BETI Buchares 12145.4 12065.0 +0.67% +4.13%
t 0 4
.SBITO Ljubljan <.sbito p a>
.BELEX Belgrade <.belex>
.SOFIX Sofia <.sofix>
Yield Yield Spread Daily
(bid) change vs Bund change
3×6 6×9 9×12 3M
Note: are for
(Reporting by Jason Hovet in Prague, Krisztina Than in
Budapest, and Pawel Florkiewicz in Warsaw; Editing by Shounak
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