Forint hits lowest since mid-July as FX pressure remains

Forint hits lowest since mid-July as FX pressure remains

PRAGUE, Aug 23 (Reuters) - Hungary's forint dropped to a near six-week low on Tuesday as U.S. dollar strength and soaring energy prices in Europe raised economic worries, tightening pressure on central Europe's currencies.

The central European region's currencies have seen little reason to firm, with economies starting to slow sharply and surging inflation yet to peak even after sharp interest rate hikes since last year. Record-high energy prices have added to the woes.

The forint EURHUF= has been the worst-hit, falling to a record low of 416.90 to the euro in July, and has been unable to maintain any distance from that level since then. On Tuesday, it traded 0.2% lower at 409.0 after earlier touching a session low beyond 410.

Equilor analysts said markets were watching the psychological level of 410, of which a clear break could trigger weakening back to record lows.

"In this case it is possible that the National Bank of Hungary raises its one-week deposit rate on Thursday and policymakers will not wait for next week's scheduled rate-setting meeting," Equilor said.

The central bank, which last month lifted its base rate to 10.75%, is scheduled to hold a rate-setting meeting next on Aug. 30.

Elsewhere, the Polish zloty EURPLN= stayed on the back foot to bid 0.1% lower on the day, while the Czech crown EURCZK= tread water at 24.67 to the euro. The Czech central bank said earlier this month it would maintain a mandate to prevent excessive fluctuations of the currency through interventions.

Analysts in both countries said pressure would remain on the currencies in the current backdrop of a hawkish U.S. Fed helping the dollar.

Stock markets were mixed, with Warsaw .WIG20 up 1% while Prague .PX and Budapest .BUX shed a touch.

CEE

SNAPSHO AT

MARKETS T

1025

CET

CURRENC

IES

Latest Previou Daily

Change

s

bid

close

change in 2022 EURCZK Czech

<EURCZK 24.6660 24.6700 +0.02% +0.84% =

crown

=>

EURHUF Hungary <EURHUF 409.000 408.000 -0.24% -9.68% =

forint

=>

0

0

EURPLN Polish

<EURPLN 4.7705 4.7660 -0.09% -3.76% =

zloty

=>

EURRON Romanian <EURRON 4.8850 4.8855 +0.01% +1.29% =

leu

=>

EURHRK Croatian <EURHRK 7.5040 7.5095 +0.07% +0.18% =

kuna

=>

EURRSD Serbian <EURRSD 117.320 117.360 +0.03% +0.22% =

dinar

=>

0

0

Note:

calculated from

1800

daily

CET

change

Latest Previou Daily

Change

s

close

change in 2022 .PX

Prague

.PX

1201.07 1201.19 -0.01% #VALUE!

00

.BUX

Budapest .BUX

42555.5 42705.3 -0.35% -16.10%

2

6

.WIG20 Warsaw

<.WIG20 1657.37 1640.02 +1.06% -26.89%

>

.BETI Buchares .BETI 12518.6 12457.7 +0.49% -4.15%

t

7

3

.SBITO Ljubljan <.SBITO 1165.59 1171.37 -0.49% -7.16% P

a

P>

.CRBEX Zagreb

<.CRBEX 2013.90 2013.55 +0.02% -3.15%

>

.BELEX Belgrade <.BELEX 848.36 848.40 -0.00% +3.36% 15

15>

.SOFIX Sofia

<.SOFIX 611.99 610.75 +0.20% -3.73%

>

Yield

Yield

Spread Daily

(bid)

change vs Bund change

in

Czech

spread

Republic

CZ2YT=

2-year <CZ2YT= 5.9590 -0.1110 +507bp -13bps RR

RR>

s CZ5YT=

5-year <CZ5YT= 4.8320 0.0460 +372bp

+3bps RR

RR>

s CZ10YT

<CZ10YT 4.5200 -0.0360 +322bp

-5bps =RR

10-year =RR>

s

Poland

PL2YT=

2-year <PL2YT= 7.1630 0.1060 +627bp

+9bps RR

RR>

s PL5YT=

5-year <PL5YT= 6.5960 0.1080 +548bp

+9bps RR

RR>

s PL10YT

<PL10YT 6.2350 0.0820 +493bp

+7bps =RR

10-year =RR>

s

FORWARD

3x6

6x9

9x12

3M

interba

nk

Czech

<CZKFRA

7.34

7.32

7.08

7.25

Rep

><PRIBO

R=>

Hungary <HUFFRA

14.70

14.93

14.91

12.11

><BUBOR

=>

Poland

<PLNFRA

7.41

7.49

7.28

7.06

><WIBOR

=>

Note:

are for ask

FRA

prices

quotes

********************************************

******************


Reporting by Jason Hovet in Prague, Anita Komuves in Budapest and Pawel Florkiewicz in Warsaw; Editing by Krishna Chandra Eluri