CEE MARKETS-Forint leads losses as investors digest taxation measures

OTP Bank Nyrt.

09/07/2024 09:17

By Boldizsar  Gyori
       BUDAPEST, July 9 (Reuters) - Hungary's forint  EURHUF= 
weakened on Tuesday after inflation for June came in below
expectations and investors digested new government policies to
balance the budget.
    The forint touched its strongest point in a month against
the euro on Monday before weakening beyond 395 following a
government announcement that it would increase taxation measures
on banks, energy and multinational companies. 
    It weakened further on Tuesday, trading 0.57% softer on the
day at 396.5 by 0750 GMT.
        "I attribute the forint's weakening to yesterday's
announcements, and not to the lower-than-expected inflation
data," a local trader said.
    Hungary's headline inflation rate  HUCPIY=ECI  eased to an
annual 3.7% in June, below forecast, after an uptick in the
previous two months, data showed on Tuesday.
    "Despite the recession of inflation, I don't see a reason
for the National Bank of Hungary to cut at its next rate-setting
meeting," the trader added.
    Hungary would keep existing windfall taxes on retailers and
multi-national companies this year instead of phasing them out
as expected, the prime minister's chief of staff told a briefing
on Monday. The state would also tax banks' foreign currency
transactions and hike transaction fees, he said.
    The Polish zloty  EURPLN= , central-Europe's biggest gainer
this year, firmed slightly to trade at 4.65 to the euro, but
analysts see limits for further appreciation. 
    "The EUR-PLN exchange rate dropped below 4.27 and thus came
closer to this year's lows around 4.25. This level of support
may limit further appreciation of the Polish zloty against the
euro," Alior Bank said in a note. 
    The Czech crown traded at 25.2, down 0.1%. 
 
                   CEE       SNAPSHO   AT                     
                   MARKETS   T        0950            
                                      CET             
                             CURRENC                          
                             IES                      
                             Latest   Previou  Daily  Change
                                      s               
                             trade    close    chang  in 2024
                                               e      
 EURCZK=  Czech                                   %  
 EURHUF=  Hungary                 0        0      %  
 EURPLN=  Polish                                 4%  
 EURRON=  Romania                                 %  
 EURRSD=  Serbian                 0        0     7%  
          Note:    calculated from             1800           
          daily                                CET    
          change                                      
                                                              
                             Latest   Previou  Daily  Change
                                      s               
                                      close    chang  in 2024
                                               e      
 .PX      Prague    .PX      1572.36  1575.58  -0.20   +11.20%
                                           00      %  
 .BUX     Budapes   .BUX     71308.6  71150.5   +0.2   +17.63%
          t                        9        3     2%  
 .WIG20   Warsaw    .WIG20   2542.95  2539.40   +0.1    +8.53%
                                                  4%  
 .BETI    Buchare   .BETI    18461.1  18445.6   +0.0   +20.10%
          st                       2        8     8%  
                                                              
                                               Sprea  Daily
                                               d      
                                               vs     change
                                               Bund   in
          Czech                                       spread
          Republi                                     
          c                                           
 CZ2YT=R                                       bps  
 CZ5YT=R                                       bps  
 CZ10YT=                                      bps  
          Poland                                              
 PL2YT=R                                       bps  
 PL5YT=R                                       bps  
 PL10YT=                                      bps  
                                                              
                   FORWARD RATE                               
                   AGREEMENTS                         
                             3x6      6x9      9x12   3M
                                                      interban
                                                      k
          Czech     CZKFRA      4.31     4.05   3.87      4.68
          Rep                                        
          Hungary   HUFFRA      6.56     6.29   6.00      6.87
                    BUBOR=                            
          Poland    PLNFRA      5.83     5.77   5.55      5.85
                    WIBOR=                            
          Note:    are for ask                                
          FRA      prices                             
          quotes                                      
          ******************************************          
          ********************                        
   
    
    

 (Reporting by Boldizsar Gyori in Budapest; editing by Christina
Fincher
)
 ((boldizsar.gyori@thomsonreuters.com;))
 
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