Hungarian forint firms as concerns over EU funds ease

Article content

BUDAPEST — The Hungarian forint firmed slightly on

Monday, adding to its gains from the previous session, as investors’ concerns

Article content

over negotiations between Hungary and the European Union over funds subsided.

The forint was up 0.21% and trading at 408.10 versus the euro.

Last week, the Hungarian currency was on a rollercoaster and fell as much as 415

as the unit was weighed down by media reports that the European Commission was

going to withhold funding for Budapest due to concerns over the rule of law.

Article content

“It seems like the market has calmed down a bit after negative news about EU

funds last week,” an FX trader in Budapest said.

A deal with the European Union on funds is required for a significant

strengthening of the forint, traders and analysts have said. The currency is

central Europe’s worst performer so far this year and has shed almost 10%.

The European Commission is likely to approve Hungary’s post-pandemic

recovery plan this week to keep open the possibility of EU disbursements later,

but hold back any payouts until Budapest fulfills all agreed conditions, sources

at the EU executive have said. nL8N32K30C

Long-term Hungarian bond yields were unmoved on Monday, a fixed-income

trader said.

The yield on the benchmark 10-year bond was about 8.05%.

Article content

In Hungary, data showed on Monday that business sentiment continued to

worsen in November while consumer confidence improved slightly, with both

measures remaining near dismal levels last seen during the pandemic.

Elsewhere, the Polish zloty was up 0.21% and trading at 4.6800

versus the common currency.

The zloty would continue to stabilize around the 4.7 level, Alior Bank wrote

in a note, as it was “still benefiting from relatively favorable moods in the

global markets.”

Investors also eyed a flash inflation reading for November and third-quarter

GDP estimates were due on Wednesday.

Stocks in the region were mixed, with Warsaw sliding 0.92%, while

Budapest added 0.25%.

CEE SNAPSHOT AT

MARKETS 1055 CET

CURRENCIES

Article content

Latest Previous Daily Change

bid close change in

2022

EURCZK Czech 24.3450 24.3540 +0.04% +2.16

= crown %

EURHUF Hungary 408.1000 408.9500 +0.21% -9.49%

= forint

EURPLN Polish 4.6800 4.6900 +0.21% -1.90%

= zloty

EURHRK Croatia 7.5480 7.5465 -0.02% -0.40%

= n kuna

EURRSD Serbian 117.2600 117.3500 +0.08% +0.27

= dinar %

Note: calculated from 1800

daily CET

change

Latest Previous Daily Change

close change in

2022

.PX Prague 1242.36 1243.260 -0.07%

0

.BUX Budapes 45827.66 45715.33 +0.25% -9.65%

t

.WIG20 Warsaw 1739.47 1755.69 -0.92% -23.27

%

.BETI Buchare 11550.38 11569.94 -0.17% -11.57

st %

.SBITO Ljublja 1064.79 1069.62 -0.45% -15.19

P na %

.CRBEX Zagreb 1911.85 1914.43 -0.13% -8.06%

.BELEX Belgrad <.belex15 e>

.SOFIX Sofia 594.68 595.75 -0.18% -6.45%

Yield Yield Spread Daily

(bid) change vs Bund change

in

Czech spread

Republi

c

CZ2YT= s

CZ5YT= s

CZ10YT s

Poland

PL2YT= s

PL5YT= s

PL10YT s

FORWARD

3×6 6×9 9×12 3M

interb

ank

Czech

Hungary

Poland

Note: are for ask prices

FRA

quotes

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

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

(Additional reporting by Pawel Florkiewicz in Warsaw; Editing by Sherry

Jacob-Phillips)