PRAGUE, Aug 13 (Reuters) - 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 | |||||
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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% |
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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 |
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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 | |||||