Reuters logo
in 7 months
CEE MARKETS-Currencies ease on dollar, Romanian politics
December 28, 2016 / 9:59 AM / in 7 months

CEE MARKETS-Currencies ease on dollar, Romanian politics

7 Min Read

* Forint retreats from 5-week high, leu hits 6-month low
    * Romania has no new government
    * Dollar strength weighs on CEE FX

    By Sandor Peto and Luiza Ilie
    BUDAPEST/BUCHAREST, Dec 28 (Reuters) - Central European
currencies eased against the euro on Wednesday, tracking a
strengthening of the dollar, while investors watched Romania
where President Klaus Iohannis rejected the Social Democrats'
prime minister nominee after the Dec. 11 election. 
    Figures published on Tuesday showed Romania's budget deficit
remained well below the targetted 2.8 percent of economic
output, at 0.73 percent of GDP. With no government formed, the
country does not yet have a 2017 budget or debt issuance plans.
    The Social Democrat Party promised higher wages and pensions
during the election campaign, which if implemented could see the
deficit surge next year and keep inflation anaemic. 
    The leu hit a new 6-month low against the euro. It
traded at 4.5396 at 0911 GMT.
    The prospects of low inflation in the near term keep
short-dated Romanian debt yields below better-rated Poland's
levels, but Romania has the steepest yield curve in the region.
    Its 10-year bond yield was bid at 3.68 percent, up 2 basis
points, while Poland's corresponding yield dropped 2 basis
points to 3.42 percent.
    Hungarian government bonds were motionless, with no trading
ahead of a news conference of the debt management agency AKK,
scheduled for 1000 GMT, about issuance plans next year.
    Hungary's yields are lower than levels in Poland and Romania
but are high relative to euro zone peers. The country's 10-year
yield was fixed at 3.19 percent on Tuesday.
    The forint eased by 0.3 percent to 309.5 against
the euro but stayed at the firmer side of the 310 mark, and may
soon head again towards the 5-week highs touched on Tuesday at
308, Erste's Hungarian bank unit said in a note.
    Economy Minister Mihaly Varga said last week that recent
forint levels between 310-315 were slightly weaker than
anticipated, but would allow the government to meet its goal to
lower the state debt ratio to economic output from end-2015.
 
    
              CEE        SNAPS   AT  1011          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2016
 Czech crown             27.02  27.02  -0.01  -0.10
                            60     20      %      %
 Hungary                 309.0  308.1  -0.29  1.81%
 forint                    500    400      %  
 Polish                  4.405  4.406   +0.0  -3.34
 zloty                       0      2     3%      %
 Romanian                4.539  4.534  -0.10  -0.45
 leu                         5      8      %      %
 Croatian                7.545  7.548   +0.0  1.25%
 kuna                        0      5     5%  
 Serbian                 123.0  123.1   +0.1  -1.24
 dinar                     000    900     5%      %
 Note: daily  calculate  previ  close  1800        
 change       d from     ous    at     CET    
                         STOCK                     
                         S                    
                         Lates  Previ  Daily  Chang
                         t      ous           e
                                close  chang  in
                                       e      2016
 Prague                  920.3  920.3   +0.0  -3.77
                             2      5     0%      %
 Budapest                31922  31868   +0.1   +33.
                           .27    .51     7%    45%
 Warsaw                  1941.  1936.   +0.2   +4.4
                            23     72     3%     1%
 Bucharest               7013.  7020.  -0.11   +0.1
                            19     60      %     3%
 Ljubljana               703.2  703.6  -0.07   +1.0
                             2      9      %     2%
 Zagreb                  1995.  1998.  -0.13   +18.
                            52     11      %    10%
 Belgrade     <.BELEX15  714.7  716.9  -0.30   +10.
              >              4      0      %    97%
 Sofia                   582.8  583.3  -0.08   +26.
                             6      1      %    46%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -1.07  -0.00  -025b  -1bps
              >              1      9     ps  
   5-year     <CZ5YT=RR  -0.23  -0.00   +033   +0bp
              >              4      8    bps      s
   10-year    <CZ10YT=R  0.468  -0.00   +028   +1bp
              R>                    7    bps      s
 Poland                                            
   2-year     <PL2YT=RR  1.954      0   +278   +0bp
              >                          bps      s
   5-year     <PL5YT=RR  2.724  -0.00   +329   +1bp
              >                     1    bps      s
   10-year    <PL10YT=R   3.46      0   +327   +2bp
              R>                         bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <    0.2   0.24   0.12      0
              PRIBOR=>                        
 Hungary              <   0.37    0.4   0.48   0.38
              BUBOR=>                         
 Poland               <   1.75   1.77  1.795   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
    

 (Reporting by Sandor Peto; Editing by Janet Lawrence)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below