CEE MARKETS-FX, stocks mixed with Israel-Iran conflict in focus
BUDAPEST, June 20 (Reuters) - Central European currencies and stocks were mixed on Friday as market participants eyed developments in the war between Israel and Iran, as well as the effect of rising oil prices.
The conflict between Israel and Iran entered its second week on Friday as U.S. President Donald Trump delayed a decision on U.S. involvement.
Higher oil prices due to the conflict can add to inflationary pressures and cause central banks in central Europe to hold off on rate cuts, many analysts say, which would support currencies.
The Hungarian forint EURHUF= added 0.24% to trade at 402.55 per euro as investors looked ahead to a central bank rate meeting scheduled for Tuesday.
The Polish zloty EURPLN= edged up 0.18% and was trading at 4.27 per euro.
"Tensions between Iran and Israel may remain in the focus of market participants, maintaining heightened uncertainty today and in the coming weeks," Bank Millennium wrote.
"At the moment, the EURPLN exchange rate remains stable and may remain so. We assume that fluctuations will remain in the range of 4.25-4.30, with an asymmetric risk of breaking 4.30," they said.
The Czech crown EURPLN= was 0.1% down, trading at 24.835 per euro. It has been stuck in recent trading, with little impulse even before a central bank meeting next week at which markets expect no change to interest rates.
The crown has been stable despite market moves around the conflict between Israel and Iran.
"The currency is moving around 24.80 per euro and will probably not even be moved by next week's central bank meeting where we expect rates to remain stable," bank CSOB said.
Elsewhere, the Romanian leu EURRON= slid 0.3% to trade at 5.0453 to the euro.
Stocks were mixed in the region with Budapest's equities .BUX rising 0.9% while Prague's stocks .PX added 0.4%. Bucharest's equities .BETI lost 0.5%.
CEE MARKETS SNAPSHOT AT 1029 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2025 | |
Czech crown | EURCZK= | 24.8350 | 24.8010 | -0.14% | +1.51% |
Hungary forint | EURHUF= | 402.5500 | 403.5000 | +0.24% | +2.20% |
Polish zloty | EURPLN= | 4.2700 | 4.2775 | +0.18% | +0.16% |
Romanian leu | EURRON= | 5.0453 | 5.0290 | -0.32% | -1.36% |
Serbian dinar | EURRSD= | 117.1300 | 117.2300 | +0.09% | -0.15% |
Note: daily change calculated from 1800 CET | |||||
| |||||
STOCKS | Latest | Previous close | Daily change | Change in 2025 | |
Prague | .PX | 2139.46 | 2131.5000 | +0.37% | +21.55% |
Budapest | .BUX | 98267.08 | 97441.89 | +0.85% | +23.88% |
Bucharest | .BETI | 18567.04 | 18651.06 | -0.45% | +11.04% |
| |||||
BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | CZ2YT=RR | 3.4840 | -0.0080 | +164bps | -1bps |
Czech Rep 5-year | CZ5YT=RR | 3.7930 | 0.0110 | +168bps | +2bps |
Poland 2-year | PL2YT=RR | 4.6880 | 0.0410 | +285bps | +4bps |
Poland 5-year | PL5YT=RR | 5.1930 | 0.0080 | +308bps | +1bps |
Poland 10-year | PL10YT=RR | 5.6120 | -0.0150 | +309bps | -2bps |
| |||||
FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | CZKFRA, PRIBOR= | 3.51 | 3.42 | 3.39 | 3.51 |
Poland | PLNFRA, WIBOR= | 4.86 | 4.52 | 4.24 | 5.23 |
Note: FRA quotes are for ask prices | |||||
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