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CEE MARKETS-Forex gains led by zloty ahead of interest rate meeting
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CEE MARKETS-Forex gains led by zloty ahead of interest rate meeting
Aug 31, 2024 11:07 PM

WARSAW, Aug 30 (Reuters) - Central Eastern European

currencies firmed on Friday, led higher by the Polish zloty,

ahead of next week's central bank meeting on interest rates,

after a flash estimate inflation reading for August showed

inflation edging higher.

Most emerging market currencies were higher on Friday as the

dollar weakened ahead of crucial U.S. inflation data that could

offer clues on the size of possible interest rate cuts by the

Federal Reserve next month.

Data released on Friday in Poland meanwhile showed Poland's

consumer inflation rising to 4.3% in August, slightly above

expectations, driven mainly by rising energy prices.

Poland's rate setters, who have cited inflation uncertainty

in their decisions on keeping borrowing costs steady since

October, are expected to prolong their pause next Wednesday, but

their commentary will be scrutinised for new signs of when

easing could resume.

By 0926 GMT the Polish zloty was up 0.2% against

the euro at 4.2755, at the centre point of the 4.24-4.31 range

where it has been trading since mid-August.

"The 4.28 (level) attracts like a magnet ... We assume that

if the zloty is close to this level, it is actually at a point

of short-term equilibrium for the time being and is waiting for

impulses that could break it from this point," Bank Millennium

markets analyst Mateusz Sutowicz said.

"We are counting that September central bank meetings,

including the local Monetary Policy Council, may be events that

lead to minor changes in the financial markets."

Sutowicz said that today's inflation print wasn't impacting

the zloty.

The Czech crown firmed 0.2% to 25.0250 per euro,

hovering near August's high hit earlier in the week.

Domestic demand fuelled by brisker government expenditure

drove the Czech economy's slow recovery in the second quarter,

updated statistics office data showed on Friday, with growth

muted by a sluggish industrial performance.

The Hungarian forint edged 0.1% higher to 392.50

per euro, also trading off its August high.

CEE SNAPSHOT AT

MARKETS 1126 CET

CURRENCI

ES

Latest Previous Daily Change

trade close change in 2024

Czech 25.0250 25.0615 +0.15% -1.29%

crown

Hungary 392.5000 393.0000 +0.13% -2.37%

forint

Polish 4.2755 4.2840 +0.20% +1.61%

zloty

Romanian 4.9775 4.9778 +0.01% -0.06%

leu

Serbian 116.9200 117.0200 +0.09% +0.28%

dinar

Note: calculated from 1800 CET

daily

change

Latest Previous Daily Change

close change in 2024

Prague 1587.09 1582.990 +0.26% +12.24%

0

Budapest 72982.34 73193.79 -0.29% +20.39%

Warsaw 2410.22 2403.14 +0.29% +2.87%

Bucharest 18293.25 18235.55 +0.32% +19.01%

Spread Daily

vs Bund change

in

Czech spread

Republic

2-year 5-year 10-year Poland

2-year 5-year 10-year FORWARD

3x6 6x9 9x12 3M

interban

k

Czech Rep Hungary Poland Note: FRA are for ask prices

quotes

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

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

(Reporting by Karol Badohal in Warsaw; Editing by David Holmes

)

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