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CEE MARKETS-Currencies ease as dollar firms, forint…

By Anita Komuves BUDAPEST, Aug 12 – Most Central European currencies and assets eased on Wednesday as the dollar firmed and investors were unnerved by a political deadlock over a new economic stimulus package in the United States. The Czech crown was down 0.2% at 26.198 per euro, while the Polish zloty dipped 0.19% to 4.4135 versus the common currency. The Romanian leu was stable. The Hungarian forint was down 0.19% at 345.50 to the euro, still in the range it has been in for more than two weeks. However, analysts warn that rising inflation could affect the forint’s exchange rate. Hungarian headline inflation accelerated to an annual 3.8% in July from 2.9% in June, while core inflation rose to a seven-year high of an annual 4.5%, data showed on Tuesday. “EUR-HUF may have bottomed out at 344 in the short term, as the forint risks further headwinds,” Commerzbank said. If inflation rises further, the central bank “could find itself struggling to explain to the market why it is continuing its expansionary measures”, it said. The bank cut interest rates in the past two months by a total of 30 basis points to 0.6% and started a bond buying programme to help an economy battered by the pandemic. GDP data for the second quarter is due for release on Friday. “Should the results even disappoint market expectations, the forint is likely to start the weekend on a weak footing,” Commerzbank said. Poland and Romania are also reporting second-quarter GDP numbers this week. The Czech republic was the first in the region to publish Q2 GDP data, with a smaller-than-expected contraction of 10.7% year-on-year. ** For an interactive graphic on CEE economic developments: https://reut.rs/3exsJHO Most stock indices in the CEE region slid. Prague’s assets were 0.41% lower while Budapest’s equities edged down 0.03%. Warsaw’s blue chip index was down 0.16% while Bucharest’s blue chip index firmed 0.28%. CEE SNAPSHO AT MARKETS T 1035 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech <EURCZK 26.1980 26.1460 -0.20% -2.92% crown => EURHUF= Hungary <EURHUF 345.500 344.8300 -0.19% -4.15% forint => 0 EURPLN= Polish <EURPLN 4.4135 4.4050 -0.19% -3.56% zloty => EURRON= Romanian <EURRON 4.8355 4.8380 +0.05 -0.98% leu => % EURHRK= Croatian <EURHRK 7.4780 7.4775 -0.01% -0.44% kuna => EURRSD= Serbian <EURRSD 117.550 117.6000 +0.04 +0.02% dinar => 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 925.25 929.0800 -0.41% -17.06% .BUX Budapest 36351.5 36363.83 -0.03% -21.12% 8 .WIG20 Warsaw <.WIG20 1844.74 1847.73 -0.16% -14.20% > .BETI Bucharest 8770.47 8745.68 +0.28 -12.10% % .SBITOP Ljubljana <.SBITO 860.29 861.58 -0.15% -7.08% P> .CRBEX Zagreb <.CRBEX 1601.02 1598.49 +0.16 -20.64% > % .BELEX1 Belgrade <.BELEX 670.29 671.23 -0.14% -16.39% 5 15> .SOFIX Sofia <.SOFIX 435.77 435.62 +0.03 -23.30% > % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT= 0.1290 -0.0340 +079b -5bps R RR> ps CZ5YT=R 5-year <CZ5YT= 0.3850 -0.0010 +104b -3bps R RR> ps CZ10YT= 10-year <CZ10YT 0.9780 0.1100 +143b +8bps RR =RR> ps Poland PL2YT=R 2-year <PL2YT= 0.1440 -0.0120 +081b -2bps R RR> ps PL5YT=R 5-year <PL5YT= 0.7280 -0.0130 +138b -4bps R RR> ps PL10YT= 10-year <PL10YT 1.3540 0.0100 +180b -2bps RR =RR> ps FORWARD 3×6 6×9 9×12 3M interba nk Czech Rep <CZKFRA 0.33 0.33 0.40 0.34 ><PRIBO R=> Hungary <HUFFRA 0.67 0.71 0.72 0.60 ><BUBOR => Poland <PLNFRA 0.21 0.21 0.21 0.23 ><WIBOR => Note: FRA are for ask quotes prices ********************************************* ***************** (Editing by Alison Williams)

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