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CEE MARKETS-Currencies ease after Fed pushes back rate-cut hopes
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CEE MARKETS-Currencies ease after Fed pushes back rate-cut hopes
Jun 13, 2024 2:30 AM

By Anita Komuves

BUDAPEST, June 13 (Reuters) - Central European

currencies eased on Thursday, with the Hungarian forint leading

losses, as riskier assets were under pressure due to the

uncertainty after the U.S. Federal Reserve signalled fewer

interest rate cuts this year.

The forint slid 0.25% to trade at 395.4 per euro,

at a seven-week low.

"It seems like emerging markets are not a priority right

now," a Budapest-based forex trader said.

"Risk aversion is still very strong, and apparently the

comments after the Fed's decision yesterday also made things

even more uncertain, and I do not know when any risk appetite

could return."

The Fed held interest rates steady on Wednesday and pushed

out the start of rate cuts to perhaps as late as December, with

the central bankers projecting only one quarter-point rate cut

this year from three projected in March.

Investors are also eyeing a decision about Hungary's credit

rating by ratings agency Fitch due to be published late on

Friday, as well as a meeting of the monetary policy council of

the central bank scheduled for next Tuesday, traders and

analysts said.

"I expect quiet range trading in the forint until the

cenbank meeting," another trader in Budapest said.

Elsewhere, the Polish zloty was 0.18% lower and

trading at 4.3355 versus the euro.

"The cautious approach of the European Central Bank and the

Fed presented in June regarding the rapid easing of monetary

policy they take away some of the advantage of the zloty in the

form of carry trade changes," Bank Millennium wrote in a note.

"As a result, the Polish currency may anchor at current

levels in the coming days."

The Czech crown slid 0.09% to trade at 24.671 to

the euro.

Stocks in the region were mixed, with Warsaw's index

down 0.87% while Budapest gained 0.3%.

CEE SNAPSHO AT

MARKETS T 1042

CET

CURRENC

IES

Latest Previou Daily Change

s

trade close change in

2024

Czech %

Hungary 0 0

Polish %

Romania Serbian 0 0 %

Note: calculated from 1800

daily CET

change

Latest Previou Daily Change

s

close change in

2024

Prague 1537.65 1538.36 -0.05% +8.74

00 %

Budapes 70450.3 70237.8 +0.30% +16.2

t 7 2 2%

Warsaw 2421.65 2442.89 -0.87% +3.36

%

Buchare 17848.9 17788.7 +0.34% +16.1

st 6 1 2%

Spread Daily

vs Bund change

in

Czech spread

Republi

c

s

s

s

Poland

s

s

s

FORWARD

3x6 6x9 9x12 3M

interb

ank

Czech 4.64 4.30 4.08 5.07

Rep Hungary 7.01 6.76 6.50 6.90

Poland 5.80 5.69 5.42 5.85

Note: are for ask

FRA prices

quotes

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

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

(Additional reporting by Pawel Florkiewicz in Warsaw; Editing

by Rashmi Aich)

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