Currencies hold strong near recent highs
EASTEUROPE-MARKETS/ (CEE MARKETS):CEE MARKETS-Currencies hold strong near recent highs
PRAGUE, Dec 5 (Reuters) - The Polish zloty and the Czech crown held tight around more than two-month highs against the euro on Thursday while the Hungarian forint climbed a third straight day as markets took in more hawkish central bank stances. The crown rose in the previous session after third-quarter Czech wage data came in higher than expected and central bank Governor Ales Michl also said policymakers were likely to soon pause their rate-cutting cycle. Meanwhile, Poland's central bank left rates on hold on Wednesday for a 13th straight meeting with inflation expected to remain elevated in the coming months. The central banks of Hungary and Romania have already held their main rates steady - at the European Union's joint highest levels - for the past two meetings, as the region turns to stable policy stances with inflation risks still around even as economic recoveries remain muted. After facing pressure from a firming dollar in the past month, currencies are getting some temporary relief. The crown inched up 0.1% to 25.147 to the euro on Thursday, and was near a high of 25.11, its strongest since late September, hit on Wednesday. "Stronger wages in Q3 and a vision of possible stability of rates in December are short-term positive news for the crown," CSOB said, adding global factors like U.S. payrolls data and euro/dollar moves could continue to dictate the crown. "The crown may retain a slight optimism, (but) further gains from current levels will be complicated." In Poland, the zloty added 0.2% to trade at 4.27 per euro and markets were waiting on a scheduled news conference with central bank Governor Adam Glapinski later in the day following Wednesday's rate decision. Bank Millennium said investors have cooled expectations on the scale of possible rate cuts in 2025, but that the governor's comments could give more clues. "On technical grounds, breaking the level of 4.2850 per euro opens up the potential to 4.2620," it said. A Reuters poll on Thursday showed analysts see little scope for gains in the coming year for central Europe's main currencies. The forint, which hit a two-year low this week, could recoup some of its recent steep losses in the coming months but it is expected to return to its current weak levels within the next year, the poll showed. The forint rose 0.2% to 412.45 to the euro on Thursday. Romania's leu was steady with markets preparing for the third national vote in as many weeks. A benchmark domestic 10-year bond yield was steady, bid at 7.48%, around its highest level since April 2023. People vote in a presidential election runoff on Sunday that could see Calin Georgescu, a far-right critic of NATO, defeat pro-European centrist Elena Lasconi, an outcome that might isolate Romania in the West and erode its support for Ukraine. CEE SNAPSHOT AT MARKETS 1057 CET CURRENCIES Latest Previo Daily Change us trade close change in 2024 Czech
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First Published:5 Dec 2024, 03:49 PM IST
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