WARSAW, Sept 16 (Reuters) - The forint continued to firm
on Monday as a weaker dollar ahead of the U.S. rates decision
boosted emerging market assets including Central Eastern
European currencies.
Markets are increasingly expecting an oversized
50-basis-point rate cut by the Federal Reserve later this week,
putting pressure on the dollar and boosting investors' risk
appetite for riskier assets.
By 1002 GMT, the Hungarian forint was up 0.1%
against the euro to 394.20, firming for a fourth session
straight to erase losses from early last week.
"I think what is really important here is the dollar
weakening ahead of the FOMC decision this Wednesday," Peter
Virovacz, senior economist at ING in Budapest, said.
"A bigger and bigger share of market players are expecting a
50 basis point rate cut by the Fed and...this is possibly
spilling into the weaker dollar and generally improving outlook
for the whole CEE region from an FX perspective."
He called the forint's move against the euro "the usual
zigzagging between 393-398", adding that the Fed's decision
could have implications for the Hungarian National Bank, which
holds a policy decision meeting next week.
In Poland, the zloty also firmed 0.1% to 4.2740
per euro, returning to levels from early last week.
"It is possible that the zloty will weaken this week. The
FOMC meeting will be the key event. In the case of a small rate
cut by 25bps...the dollar could strengthen with a negative
impact on CEE currencies," Santander Bank Polska wrote in a
note.
The Czech crown traded 0.1% higher at 25.1350 per
euro, hovering near its lowest levels since late August.
CEE SNAPSHOT AT
MARKETS 1202 CET
CURRENCI
ES
Latest Previous Daily Change
trade close change in 2024
Czech Hungary Polish Romanian Serbian Note: calculated from 1800 CET
daily
change
Latest Previous Daily Change
close change in 2024
Prague 1575.19 The #VALUE! #VALUE!
unexpect
ed error
occurs
during
parsing
the
formula.
Budapest 72910.66 72075.48 +1.16% #VALUE!
Warsaw 2303.93 2330.89 -1.16% #VALUE!
Bucharest 17497.86 17477.86 +0.11% #VALUE!
Spread Daily
vs Bund change
in
Czech spread
Republic
2-year 5-year 10-year Poland
2-year 5-year 10-year FORWARD
3x6 6x9 9x12 3M
interban
k
Czech Rep 3.83 3.44 3.11 4.32
Hungary 6.10 5.61 5.07 6.47
Poland 5.73 5.27 4.68 5.85
Note: FRA are for ask prices
quotes
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*************
(Reporting by Karol Badohal in Warsaw; Editing by Shreya Biswas
)
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