CEE MARKETS-Currencies slip as investors shun riskier assets

0947 GMT, the forint had gained to 336.70. It remains

BUDAPEST, Nov 28 (Reuters) - The Hungarian forint slipped to a record low against the euro and the Polish zloty also eased on Thursday, amid renewed tensions between the U.S. and China over protests in Hong Kong. The forint touched 337.21 versus the euro. The Hungarian central bank's easy monetary policy, the loosest in central Europe, makes the currency vulnerable when risk aversion grows. down by 4.6% so far this year, the most in the region, and analysts said decline could continue. "The forint's weakening has not accelerated ... but it slowly keeps edging weaker," Erste said in a note. They said this movement, based on a technical analysis, could take the exchange rate to as low as 344. The National Bank of Hungary is sticking to its loose policy, keeping its base rate at 0.9% and the overnight deposit rate at minus 0.05% at its latest meeting. The NBH has repeatedly said it has no exchange rate target. The Czech crown weakened by 0.1% and the Polish zloty by 0.2%. "The zloty has been under pressure for six consecutive days and has reached our short-term target (4.31-4.32). We think that now the exchange rate could stabilise before restarting the upside move," Santander Bank Polska said in a note. The Czech central bank's governor repeated on Wednesday that he still preferred rate stability, taking some shine off the currency. The leu dropped to a record low of 4.8075 per euro in after-hours trade late on Wednesday. It recovered early Thursday to trade at 4.7905 at 0942 GMT. "We believe that the move was rather too sudden and a correction towards 4.7900 could occur today," ING Bank Romania said in a note. "There is, however, limited scope for a meaningful downside move." Investors are worried about Romania's swelling budget deficit, which is above the European Union's ceiling of 3% of gross domestic product, after big wage and pension increases. Romania's 2020 budget plan will probably be built around a consolidated deficit target of about 3.5% of GDP, Finance Minister Florin Citu said on Wednesday. A planned 2019 budget revision will raise this year's deficit target to 4.3% of GDP from an initial target of 2.8%, after the government collected less tax than expected.



Latest Previous Daily Changebid close change in 2019Czech 25.5670 25.5460 -0.08% +0.55%


Hungary 336.7000 336.3000 -0.12% -4.64%


Polish 4.3185 4.3095 -0.21% -0.67%


Romanian 4.7905 4.8010 +0.22% -2.85%


Croatian 7.4368 7.4362 -0.01% -0.36%


Serbian 117.5100 117.5600 +0.04% +0.67%


Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1087.90 1085.450 +0.23% +10.27%


Budapest 43608.64 43599.69 +0.02% +11.42%Warsaw 2164.21 2181.33 -0.78% -4.94%Bucharest 9863.53 9875.75 -0.12% +33.59%Ljubljana 893.66 896.33 -0.30% +11.12%Zagreb 1991.58 1991.53 +0.00% +13.88%Belgrade <.BELEX15 769.54 767.13 +0.31% +1.03%>Sofia 543.98 543.98 +0.00% -8.49%


Yield Yield Spread Daily(bid) change vs Bund change


Czech spread


2-year <CZ2YT=RR 1.4330 -0.0370 +207bps -4bps>5-year <CZ5YT=RR 1.2100 -0.0220 +182bps -1bps>10-year <CZ10YT=R 1.4560 -0.0300 +183bps -2bps

R> Poland

2-year <PL2YT=RR 1.3590 -0.0170 +199bps -2bps>5-year <PL5YT=RR 1.7350 -0.0060 +235bps +0bps>10-year <PL10YT=R 1.9860 0.0330 +236bps +4bps




3x6 6x9 9x12 3M

interban k

Czech Rep < 2.23 2.22 2.16 2.18


Hungary < 0.23 0.25 0.28 0.17


Poland < 1.72 1.69 1.66 1.71

WIBOR=> Note: FRA are for ask prices quotes



(Reporting by Krisztina Than, Luiza Ilie in Bucharest, Alan Charlish in Warsaw and Jason Hovet in Prague; editing by Larry King)