BUCHAREST, March 25 (Reuters) - The Polish zloty eased
against the euro on Thursday as Warsaw reported its highest
daily rise in new coronavirus cases, stoking concerns about
extended lockdowns, while other central European currencies and
stocks were mixed.
By 1035 GMT, the zloty was 0.3% down against the
euro at 4.6350.
Poland reported a record 34,151 new daily coronavirus cases
on Thursday, the highest since the start of the pandemic, with
the government expected to announce more restrictions as
hospitals struggle to treat COVID-19 patients.
Elsewhere in the region, the Czech crown eased off
a two-week low hit in the previous session and was flat against
the euro at 26.2650.
On Wednesday, the Czech central bank left interest rates
unchanged and warned it would not rush to begin raising
borrowing costs as the pandemic elevated risks.
"We think that the (bank's) view has remained relatively
unchanged and that it will continue to look for an opportunity
to start normalising its monetary policy," Morgan Stanley said
in a research note.
"We maintain our view that the MPC will start seeing higher
chances of a rate hike only in 3Q21."
Earlier this month, Hungarian and Romanian central banks
also left interest rates unchanged, saying inflation spikes were
likely temporary and pledging to curb sustained rises.
"We think central banks in the CEE region will look through
this temporary increase in inflation and will refrain from
tightening policy while economies remain on a recovery track,"
Goldman Sachs said in a note.
"With Czech inflation likely to weaken in the second half of
this year, we expect the first rate hike to be delayed until
2022Q1, which is significantly more dovish than current market
The Romanian leu was 0.1% up against the euro, while the
Hungarian forint held steady at 364.7000. The forint
firmed on Wednesday, supported by the central bank's FX swap
tender, which policymakers use to provide euro liquidity and
ease selling pressure on the forint.
Stock markets were mixed, with Prague's and Hungary's
down 0.2% and 0.1%, respectively, Warsaw's flat
and Bucharest's up 0.5%.
CEE SNAPSHO AT
MARKETS T 1159
Latest Previou Daily Change
bid close change in 2021
Czech <EURCZK= 26.2650 26.2650 +0.00% -0.14%
Hungary <EURHUF= 364.560 364.550 -0.00% -0.50%
forint > 0 0
Polish <EURPLN= 4.6345 4.6235 -0.24% -1.62%
Romanian <EURRON= 4.8860 4.8885 +0.05% -0.43%
Croatian <EURHRK= 7.5715 7.5745 +0.04% -0.32%
Serbian <EURRSD= 117.550 117.560 +0.01% +0.02%
dinar > 0 0
Note: calculated from 1800
change Latest Previou Daily Change
close change in 2021
Prague 1088.63 1090.19 -0.14% +5.99%
Budapest 44232.5 44290.2 -0.13% +5.05%
Warsaw 1902.03 1899.95 +0.11% -4.13%
Buchares 10907.9 10851.6 +0.52% +11.24
t 8 0 %
Ljubljan <.SBITOP 979.54 982.63 -0.31% +8.74%
Zagreb 1850.83 1853.53 -0.15% +6.41%
Belgrade <.BELEX1 743.21 737.22 +0.81% -0.72%
Sofia 492.97 494.29 -0.27% +10.15
Yield Yield Spread Daily
(bid) change vs Bund change
2-year <CZ2YT=R 0.6650 -0.1270 +138bp -13bps
5-year <CZ5YT=R 1.5110 -0.0470 +220bp -4bps
<CZ10YT= 1.9120 -0.0300 +228bp -2bps
10-year RR> s
2-year <PL2YT=R 0.0990 -0.0110 +082bp -1bps
5-year <PL5YT=R 0.8820 0.0040 +157bp +1bps
<PL10YT= 1.5000 -0.0140 +187bp +0bps
10-year RR> s
3x6 6x9 9x12 3M
Czech 0.45 0.56 0.93 0.36
Hungary 0.97 1.14 1.30 0.77
Poland 0.23 0.23 0.27 0.21
Note: are for ask
(Reporting by Luiza Ilie in Bucharest, Anita Komuves in
Budapest and Jason Hovet in Prague; Editing by Ramakrishnan M.)