CEE MARKETS-FX falls as Russian annexation spooks markets
30/09/2022 10:42
By Alan Charlish
WARSAW, Sept 30 (Reuters) - Central European currencies
slid on Friday as anxiety in the region's markets deepened
before Russian President Vladimir Putin was due to proclaim
Moscow's annexation of territory in Ukraine.
The Polish zloty EURPLN= and Hungarian forint EURHUF=
have taken a hammering this week, buffeted by concerns over
European energy security after gas leaks appeared in the Nord
Stream pipelines.
Russia's annexation of the Russian-occupied areas of
Donetsk, Luhansk, Kherson and Zaporizhzhia, which has been
condemned in the West and beyond, has ratcheted up the tension
even further. urn:newsml:reuters.com:*:nL6N30P01O
"My guess is that investors are afraid of Putin," said Piotr
Poplawski, senior economist at ING in Warsaw. "Who knows what
will happen during the weekend."
At 0854 GMT the zloty was 0.34% weaker against the euro,
with a higher-than-expected inflation reading of 17.2%
year-on-year failing to provide a positive impulse. urn:newsml:reuters.com:*:nL1N3110KK
"Russia is a question mark and the Ukrainian war... the
market remains very volatile and I think there are fireworks
ahead of us next week," said a Warsaw-based currency trader.
The forint was 0.28% softer at 421.60 at the end of a week
that has seen it hit record lows.
"The main reason for the weakening was the pressure from the
strong dollar and the rise in the gas prices but the central
bank's announcement on Tuesday was oil to the fire," an FX
trader in Budapest said.
The National Bank of Hungary said on Tuesday that it was
ending its year-long rate hike cycle amid a slowing economy and
that it will focus on liquidity tightening. urn:newsml:reuters.com:*:nL8N30Y18B
The Czech crown was 0.20% weaker against the euro at 24.604.
The Czech National Bank (CNB) kept interest rates unchanged
on Thursday, as it said it would continue market interventions
to prevent excessive currency swings. urn:newsml:reuters.com:*:nL8N310496
Warsaw's WIG Banks stock index .BNKI was down 0.1%, with
Getin Holding GTN.WA , the parent of Getin Noble Bank, falling
over 5% after Poland's Bank Guarantee Fund has started its
compulsory restructuring of the lender. urn:newsml:reuters.com:*:nL1N3110DH
CEE SNAPSHO AT
MARKETS T 1054
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2022
EURCZK Czech
EURHUF Hungary 0 0
EURPLN Polish
EURRON Romanian
EURHRK Croatian
EURRSD Serbian 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change
s
close change in 2022
.PX Prague .PX 1124.24 1114.34 +0.89% #VALUE!
00
.BUX Budapest .BUX 37662.1 37035.7 +1.69% -25.75%
7 9
.WIG20 Warsaw <.WIG20 1379.45 1380.10 -0.05% -39.15%
>
.BETI Buchares .BETI 10665.2 10549.4 +1.10% -18.34%
t 5 4
.SBITO Ljubljan <.SBITO 955.59 955.83 -0.03% -23.89%
P a P>
.CRBEX Zagreb <.CRBEX 1900.99 1900.46 +0.03% -8.58%
>
.BELEX Belgrade <.BELEX 827.24 827.24 +0.00% +0.79%
15 15>
.SOFIX Sofia <.SOFIX 583.44 585.29 -0.32% -8.22%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year s
CZ5YT= 5-year s
CZ10YT s
Poland
PL2YT= 2-year s
PL5YT= 5-year s
PL10YT s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech
Hungary
Poland
Note: are for ask
FRA prices
quotes
********************************************
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(Reporting by Alan Charlish in Warsaw and Anita Komuves in
Budapest, Editing by Angus MacSwan)
((alan.charlish@thomsonreuters.com;))
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