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CEE MARKETS-Currencies mostly steady, zloty slightly lags as Ukraine, inflation in focus

ReutersAug 13, 2025 9:44 AM

- Central European currencies mostly held steady on Wednesday, buoyed by dollar weakness as expectations of a U.S. interest rate cut next month boosted demand for riskier assets.

Poland's zloty trailed peers as investors assessed the probability of the Polish central bank cutting interest rates next month.

Preliminary gross domestic product data on Wednesday showed Polish growth continued at a solid pace in the second quarter, although it was a little slower than expected on a quarter-on-quarter basis.

The zloty EURPLN= had inched 0.1% lower to 4.2585 a euro by 0913 GMT.

Investors are also waiting on a final Polish inflation reading for July due on Thursday, while the planned summit between U.S. President Donald Trump and his Russian counterpart Vladimir Putin on Friday to discuss the Ukraine war was also awaited.

"Until then, we do not expect any major changes in the Polish currency," ING Bank Slaski said in a note.

"This is especially true given the stabilizing mood supported by the shorter work week and the relative calm of the EUR/USD exchange rate."

Hungary's forint EURHUF= and the Czech crown EURCZK= edged up less than 0.1%, with the latter trading at 24.46 to the euro.

The crown jumped to around 19-month highs last week, when the central bank said inflation pressures in the domestic economy prevented a further interest rate cut for now.

However, there was limited space for the crown to gain further, analysts said.

"The crown did not gain much from yesterday's weakening of the dollar, and in the absence of domestic macro figures the rest of the week, we do not expect any higher level of volatility," bank CSOB said.

Elsewhere, Romania's leu EURRON= traded a touch lower at 5.0628 a euro.

Central Bank Governor Mugur Isarescu on Tuesday said interest rates could not fall currently, and he also said the leu has been stable without the bank's support.

CEE MARKETS SNAPSHOT AT 1113 CET

CURRENCIES

Latest trade

Previous close

Daily change

Change in 2025

Czech crown

EURCZK=

24.4600

24.4760

+0.07%

+3.06%

Hungary forint

EURHUF=

394.9500

395.1000

+0.04%

+4.17%

Polish zloty

EURPLN=

4.2585

4.2540

-0.11%

+0.43%

Romanian leu

EURRON=

5.0628

5.0606

-0.04%

-1.70%

Serbian dinar

EURRSD=

117.0800

117.1500

+0.06%

-0.11%

Note: daily change calculated from 1800 CET

STOCKS

Latest

Previous close

Daily change

Change in 2025

Prague

.PX

2298.36

2294.5200

+0.17%

+30.58%

Budapest

.BUX

103907.05

104031.29

-0.12%

+30.99%

Warsaw

.WIG20

2980.50

3014.18

-1.12%

+35.97%

Bucharest

.BETI

20994.34

20826.19

+0.81%

+25.56%

BONDS

Yield (bid)

Yield change

Spread vs Bund

Daily change in spread

Czech Rep 2-year

CZ2YT=RR

3.5060

0.0060

+156bps

+3bps

Czech Rep 5-year

CZ5YT=RR

3.8600

-0.0080

+159bps

+4bps

Czech Rep 10-year

CZ10YT=RR

4.3150

-0.0100

+162bps

+4bps

Poland 2-year

PL2YT=RR

4.2280

-0.1370

+229bps

-11bps

Poland 5-year

PL5YT=RR

4.7720

-0.0370

+250bps

+1bps

Poland 10-year

PL10YT=RR

5.3730

-0.0590

+267bps

-1bps

FORWARD RATE AGREEMENTS

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRA, PRIBOR=

3.55

3.51

3.46

3.51

Poland

PLNFRA, WIBOR=

4.38

4.02

3.70

4.89

Note: FRA quotes are for ask prices

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