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)