WARSAW, Sept 15 (Reuters) - The Czech crown was at its weakest level against the euro in over two months on Tuesday, as a spike in the number of coronavirus infections in the country spooked investors. The Czech Republic has seen one of Europe's largest surges in new coronavirus cases in recent weeks, and on Tuesday the Institute of Health Information and Statistics (UZIS) said the reproduction 'R' number of COVID-19 infections had risen to 1.59. "It is still the same story: the market doesn't seem to like the increasing COVID-19 cases. Longer-dated rates are on the way down the last couple of days, so this is also playing in favour of a negative move on the crown," said a Prague-based trader. At 0907 GMT, the crown was 0.31% softer against the euro on the day at 26.75. The region's other currencies also fell ahead of an interest rate decision in Poland on Tuesday and as the U.S. Federal Reserve started a two-day policy meeting, the first since unveiling a landmark shift to a more tolerant stance on inflation in August. The Polish zloty was 0.11% weaker at 4.4512 and the Hungarian forint slipped 0.16% to 357.75. "The FOMC press release and the subsequent Fed chairman's press conference are always a surprise risk," Konrad Bialas, chief economist at DM TMS Brokers, said in a note. "Investors' caution also means that the readings from the euro zone and the U.S. scheduled for today may not be fully discounted - nobody wants to aggressively engage in positions that the Fed may later send into the abyss of stop losses." Analysts expect Poland's central bank to leave the cost of borrowing unchanged at the record-low level of 0.1%. "It is hard to imagine, in the light of the recent comments of the NBP governor and the macro data, that the Council would significantly modify its rhetoric," Bank Millennium analysts said in a note. Stocks were mixed, with Prague's PX index rising 0.37% while the main indexes in Budapest and Warsaw fell 1.14% and 0.55% respectively. BDM analyst Adrian Gorniak said one factor behind the drop in Poland could be funds selling shares in order to be able to invest in the upcoming IPO of Polish commerce platform Allegro. Benchmark Polish 10-year yields were flat at 1.367% while Czech 10-year yields fell over 3 basis points to 1.044%. CEE SNAPSHO AT MARKETS T 1107 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 26.7500 26.6665 -0.31% -4.93% = crown => EURHUF Hungary <EURHUF 357.750 357.165 -0.16% -7.44% = forint => 0 0 EURPLN Polish <EURPLN 4.4512 4.4462 -0.11% -4.38% = zloty => EURRON Romanian <EURRON 4.8555 4.8560 +0.01% -1.38% = leu => EURHRK Croatian <EURHRK 7.5355 7.5365 +0.01% -1.20% = kuna => EURRSD Serbian <EURRSD 117.480 117.580 +0.09% +0.08% = dinar => 0 0 Note: calcula 1800 daily ted CET change from STOCKS Latest Previou Daily Change s close change in 2020 .PX Prague 902.07 898.700 +0.37% -19.14% 0 .BUX Budapest 34606.1 35004.2 -1.14% -24.90% 0 4 .WIG20 Warsaw <.WIG20 1749.05 1758.65 -0.55% -18.65% > .BETI Buchares 9337.36 9368.12 -0.33% -6.41% t .SBITO Ljubljan <.SBITO 844.68 844.24 +0.05% -8.77% P a P> .CRBEX Zagreb <.CRBEX 1613.08 1608.78 +0.27% -20.04% > .BELEX Belgrade <.BELEX 690.70 690.55 +0.02% -13.84% 15 15> .SOFIX Sofia <.SOFIX 430.80 430.91 -0.03% -24.17% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 0.1960 -0.0200 +089bp -2bps RR RR> s CZ5YT= 5-year <CZ5YT= 0.5980 -0.0940 +128bp -10bps RR RR> s CZ10YT <CZ10YT 1.0440 -0.0360 +152bp -4bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.0630 -0.0340 +075bp -4bps RR RR> s PL5YT= 5-year <PL5YT= 0.6900 -0.0150 +137bp -2bps RR RR> s PL10YT <PL10YT 1.3670 0.0000 +184bp +0bps =RR 10-year =RR> s FRA 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 0.36 0.36 0.39 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.79 0.84 0.89 0.63 ><BUBOR => Poland <PLNFRA 0.23 0.20 0.20 0.23 ><WIBOR => Note: FRA quotes are for ask prices ******************************************** ****************** (Reporting by Alan Charlish in Warsaw and Jason Hovet in Prague, editing by Ed Osmond)
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