LONDON (Reuters) - Volatility gauges for a number of central and eastern Europe’s main currencies spiked to their highest since last June’s Brexit vote on Monday, as traders took out insurance bets ahead of France’s upcoming elections.
One-month options for the Czech crown and Hungarian forint versus the dollar both jumped to their highest since the UK referendum, while the equivalent for Poland’s zloty matched a level last seen in November which was also the highest since the Brexit vote.
The final round of French elections is set to take place on May 7 with markets nervous about right-wing candidate Marine Le Pen’s anti-euro campaign promises.
Last week’s move by the Czech central bank to remove its cap on the crown versus the euro has also made it more volatile.
Reporting by Marc Jones, editing by Karin Strohecker