CEE MARKETS-Czech crown holds strong at nearly 3-year high as FX drift, Hungary rates watched

CD PROJEKT RED

25/08/2026 09:59

PRAGUE, Aug 25 (Reuters) - The Czech crown touched its strongest levels since September 2023 on Tuesday on the back of a weaker dollar and bets of an interest rate hike later this year, while the Hungarian forint steadied before a likely rate cut.
In Hungary, the forint has mostly weakened and underperformed central European peers since it hit its own multi-year high in June following a rally after the election of Prime Minister Peter Magyar's pro-EU party, which ended the 16-year rule of Viktor Orban.
The forint EURHUF= was less than 0.1% down at 363.10 to the euro at 0821 GMT, with Hungary's central bank expected to deliver a third straight interest rate cut at a meeting on Tuesday with inflation low.
The Czech central bank has taken a more hawkish stance even with low inflation as it sees persistent price pressures coming from the services sector and wage growth. In June, it lifted interest rates and markets are pricing chances of another hike in the coming months.
The crown EURCZK= was steady at 24.102 in mid-morning trade after earlier touching a high of 24.090.
Central Europe's currencies have found support from the weakening U.S. dollar - due to Treasury market worries over debt and conflict in the Middle East - in recent sessions as it boosts trading in emerging markets.
"The Czech crown has benefited from the weaker dollar thanks to which it is anchored around 24.100 per euro," Czech bank CSOB said.
"The U.S. bond market remains nervous, and if the dollar were to weaken further, the crown could look at stronger levels in the range of the 24.00 EUR/CZK level."
Poland's zloty EURPLN= was little changed at 4.307 to the euro on Tuesday and has sought stronger levels since falling to a 2026 low of 4.35 in July.
Bank Millennium in a trade note said from a technical standpoint, an unsuccessful attempt to reach the 4.30 level could cause a pullback to weaker levels.
On equity markets, shares in Poland's CD Projekt RED CDR.WA dropped over 7%, on track for their worst day in three months, after a late Monday announcement that the game developer was planning to release "The Witcher 4" in 2028 triggered some disappointment.

CEE MARKETS SNAPSHOT AT  1021 CET                                                                                                   
CURRENCIES                                 
Latest trade
Previous close
Daily change
Change in 2026
Czech crown
EURCZK=
24.1020
24.1020
 +0.00%
 +0.27%
Hungary forint
EURHUF=
363.1000
362.8500
-0.07%
 +5.86%
Polish zloty
EURPLN=
4.3070
4.3065
-0.01%
-2.12%
Romanian leu
EURRON=
5.2525
5.2520
-0.01%
-3.02%
Serbian dinar
EURRSD=
117.2600
117.3000
 +0.03%
 +0.03%
Note: daily change calculated from 1800 CET                                                                                                 
                                                                                                                                                                                                                                         
STOCKS                                           
Latest
Previous close
Daily change
Change in 2026
Prague
.PX
2795.41
2794.4300
 +0.04%
 +4.09%
Budapest
.BUX
152241.59
151360.28
 +0.58%
 +37.12%
Warsaw
.WIG20
4006.85
4000.72
 +0.15%
 +25.84%
Bucharest
.BETI
36412.55
36475.44
-0.17%
 +48.99%
                                                                                                                                                                                                                                          
BONDS                                                                                             
Yield (bid)
Yield change
Spread vs Bund
Daily change in spread
Czech Rep 2-year
CZ2YT=RR
4.0105
0.0301
 +115bps
 +2bps
Czech Rep 5-year
CZ5YT=RR
4.3891
-0.0010
 +142bps
-1bps
Czech Rep 10-year
CZ10YT=RR
4.9557
-0.0196
 +170bps
-3bps






Poland 2-year
PL2YT=RR
4.3770
-0.2150
 +151bps
-23bps
Poland 5-year
PL5YT=RR
5.3410
-0.0730
 +237bps
-9bps
Poland 10-year
PL10YT=RR
5.9330
-0.0100
 +267bps
-2bps
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
FORWARD RATE AGREEMENTS
3x6
6x9
9x12
3M interbank
Czech Rep
CZKFRA, PRIBOR=
4.14
4.40
4.56
3.85
Poland
PLNFRA, WIBOR=
3.88
4.08
4.17
3.83
Note: FRA quotes are for ask prices





 (Reporting by Jason Hovet in Prague and Karol Badohal in Warsaw; Editing by Devika Syamnath)
 ((breaking-news-cee@thomsonreuters.com))