Forint pares losses, talks on EU funds in focus

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BUDAPEST — The Hungarian forint firmed

on Friday, outperforming its regional peers as it recouped some

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losses from the previous session when it fell as uncertainty

grew over the prospects for a Hungarian deal on European Union

funds.

The forint was up 0.6% at 409.10 per euro, but

still nearly 10% weaker for the year, underperforming central

European currencies.

EU sources told Reuters on Thursday that the European

Commission was on track to unblock billions of euros in funds

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for Hungary, which helped the currency recoup some losses.

“The market is calmer today, trade volumes are low,” an FX

trader in Budapest said. Markets were also eyeing a rate meeting

of the Hungarian central bank scheduled for Tuesday.

“With higher-than-expected inflation, a GDP contraction that

is still to impact pricing behavior, but global financial

conditions keeping uncertainty elevated, we expect the NBH

(National Bank of Hungary) to maintain its risk-management

mode,” Morgan Stanley wrote in a note.

“Thus, we expect the central bank to leave its base rate and

its tight liquidity framework unchanged.”

Elsewhere, the Polish zloty was up 0.1% at 4.7015

per euro.

“The direction of the EUR/PLN pair at the turn of the week

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will probably be determined by the international environment,

especially the behavior of EUR/USD,” ING wrote.

“Anxiety caused by the explosion of the rocket in Poland has

completely subsided.”

First reports of the missile blast had pushed the zloty to

three-week lows on Tuesday, but the currency recovered after

Poland and NATO said on Wednesday the missile was probably not a

Russian strike but a stray fired by Ukraine’s air defenses.

Warsaw’s stocks were 1.03% higher, recouping some

losses from the previous sessions.

Elsewhere, the Czech crown added 0.16% to trade at

24.355 per euro, while the Romanian leu slid 0.22% to 4.9400.

CEE SNAPSH AT

MARKETS OT 1033

CET

CURREN

CIES

Latest Previo Daily Change

us

bid close change in

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2022

EURCZK Czech 0 0 % %

EURHUF Hungary 00 00 %

EURPLN Polish %

EURRON Romania %

EURHRK Croatia %

EURRSD Serbian 00 50 % %

Note: calcula 1800

daily ted CET

change from

Latest Previo Daily Change

us

close change in

2022

.PX Prague 1246.6 1239.2 +0.59

1 800 %

.BUX Budapes 44112. 44037. +0.17 -13.03

t 24 15 % %

.WIG20 Warsaw <.wig20> 1 3 % %

.BETI Buchare 11757. 11718. +0.33 -9.99%

st 05 48 %

.SBITO Ljublja <.sbito p na> 8 5 % %

.CRBEX Zagreb <.crbex> 3 3 %

.BELEX Belgrad <.belex e> %

.SOFIX Sofia <.sofix> %

Yield Yield Spread Daily

(bid) change vs change

Bund in

Czech spread

Republi

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CZ2YT= 0 ps

CZ5YT= ps

CZ10YT ps s

Poland

PL2YT= ps

PL5YT= ps

PL10YT ps

FORWARD

3×6 6×9 9×12 3M

interb

ank

Czech

Hungary

Poland

Note: are for

FRA ask

quotes prices

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(Editing by Mark Potter)