CEE MARKETS-Forint, crown hover near recent highs as markets eye talks on Ukraine war
BUDAPEST, Nov 25 (Reuters) - Central European currencies edged higher on Tuesday, with the Hungarian forint and the Czech crown trading near recent highs as markets focused on ongoing diplomatic efforts to end the war in Ukraine.
U.S. and Russian officials held unannounced talks in Abu Dhabi on Tuesday as part of an intense new push by President Donald Trump's administration to end the war in Ukraine.
U.S. and Ukrainian officials sought to narrow the gaps between them over a peace plan, with core issues still unresolved.
The Hungarian forint EURHUF= firmed 0.1% to trade at 382.05 per euro, inching back towards a 22-month high it hit last week.
"The forint has firmed back. The euro/forint rate has again moved towards support at 382, which remains a key level to watch, while resistance is seen near 384 on the chart," brokerage Equilor wrote in a note.
The currency has recently been supported by the European Union's joint-highest central bank rate of 6.5%, which has made the forint attractive for carry trade transactions.
Elsewhere, the Polish zloty EURPLN= added 0.1% and was trading at 4.2320 to the euro as investors eyed key economic data scheduled to be published later this week.
"The zloty's valuation awaits both information on the peace negotiations in Ukraine and Friday's preliminary CPI inflation data for November," ING wrote in a note.
On Tuesday, data showed Polish nominal retail sales in constant prices were up 5.4% year-on-year in October, above forecast.
Elsewhere, the Czech crown EURCZK= was up 0.1% and trading at 24.144 to the euro, firming back near a 26-month high at 24.131 that it hit last Wednesday.
The Czech central bank left its main rate unchanged at 3.5% again earlier this month and most analysts expect steady rates going into next year.
On Tuesday, Central Bank Vice Governor Jan Frait said that Czech interest rate setting was adequate for the current state of the economy and its outlook for the next two years, although the central bank evaluates some risks as slightly pro-inflationary.
Stocks in the region firmed, with Warsaw's .WIG20 blue chip index leading gains as it added 0.5%.
CEE MARKETS SNAPSHOT AT 1016 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2025 | |
Czech crown | EURCZK= | 24.1440 | 24.1630 | +0.08% | +4.41% |
Hungary forint | EURHUF= | 382.0500 | 382.4000 | +0.09% | +7.69% |
Polish zloty | EURPLN= | 4.2320 | 4.2375 | +0.13% | +1.06% |
Romanian leu | EURRON= | 5.0883 | 5.0900 | +0.03% | -2.20% |
Serbian dinar | EURRSD= | 117.2000 | 117.3500 | +0.13% | -0.21% |
Note: daily change calculated from 1800 CET | |||||
| |||||
STOCKS | Latest | Previous close | Daily change | Change in 2025 | |
Prague | .PX | 2441.35 | 2440.3200 | +0.04% | +38.70% |
Budapest | .BUX | 108079.30 | 107705.75 | +0.35% | +36.25% |
Warsaw | .WIG20 | 2937.50 | 2924.11 | +0.46% | +34.01% |
Bucharest | .BETI | 22917.75 | 22751.35 | +0.73% | +37.06% |
| |||||
BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | CZ2YT=RR | 3.6760 | 0.0530 | +165bps | +6bps |
Czech Rep 5-year | CZ5YT=RR | 4.0920 | 0.0240 | +181bps | +3bps |
Czech Rep 10-year | CZ10YT=RR | 4.6120 | 0.0240 | +192bps | +3bps |
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Poland 2-year | PL2YT=RR | 4.0740 | -0.0680 | +205bps | -7bps |
Poland 5-year | PL5YT=RR | 4.6610 | 0.0300 | +238bps | +3bps |
Poland 10-year | PL10YT=RR | 5.2800 | -0.0170 | +258bps | -2bps |
| |||||
FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | CZKFRA, PRIBOR= | 3.63 | 3.64 | 3.66 | 3.56 |
Poland | PLNFRA, WIBOR= | 3.75 | 3.58 | 3.53 | 4.23 |
Note: FRA quotes are for ask prices | |||||
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