March 19, 2020 / 9:18 AM / 10 days ago

CEE MARKETS-Forint touches new low, crown stabilises near 2015 low

    By Jason Hovet
    PRAGUE, March 19 (Reuters) - Hungary's forint touched a new
record low on Thursday and the Polish zloty slipped 0.8% as a
sell-off amid global coronavirus worries continued to hit
central Europe hard.
    The Czech crown stabilised slightly in early trading, but
has lost more than 8% already in March. The forint and zloty are
both down more than 5%.
    "There is panic in the market... it is risk off (at) full
strength," a Warsaw-based dealer said. "Everything is going
wild... nobody wants to have any risk, everyone is closing
risk."
    By 0903 GMT, the forint was down 1.0% at 358.06 to
the euro, off a new all-time low of 359.50. The zloty
was down at 4.573 and the crown nudged up 0.2% on the
day to 27.700 per euro after weakening to nearly 28.0 on
Wednesday.
    Central Europe's open economies are set be hit by the
disruptions to business and daily life being felt around the
world as governments seek to contain the spread of the new
coronavirus that has infected more than 200,000 worldwide.
    In central Europe, borders were closed, restaurants and
shops were mostly ordered to shut down and major factories
announced production halts across the region, including all the
major car producers that are the lifeblood of the regions'
economies.
    Analysts say low interest rates in Hungary were also leaving
the forint vulnerable.
    The crown, though, has been hardest hit in the outbreak
market panic, falling to its lowest in five years.
    Its sharp move lower is in large part due to the unwinding
of huge positions that had been built up in the currency when
the central bank was pursuing a policy of intervention to keep
it weak between 2013 and 2017, analysts and traders said.
    Elsewhere, stock markets continued their wild ride, bouncing
1-3% after sharp falls the previous day.
    
                   CEE      SNAPSHO                           
                   MARKETS  T                          
                            CURRENC                           
                            IES                        
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  27.7000  27.7565   +0.20%   -8.19%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  358.060  354.420   -1.02%   -7.52%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5731   4.5378   -0.77%   -6.93%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8555   4.8558   +0.01%   -1.38%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.6080   7.6023   -0.07%   -2.14%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.530  117.580   +0.04%   +0.03%
 =       dinar     =>             0        0           
         Note:     calcula                    1800            
         daily     ted                        CET      
         change    from                                
                                                              
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              709.78  690.370   +2.81%  -36.38%
                                           0           
 .BUX    Budapest           30053.5  29464.2   +2.00%  -34.78%
                                  3        8           
 .WIG20  Warsaw    <.WIG20  1439.36  1401.29   +2.72%  -33.06%
                   >                                   
 .BETI   Buchares           7378.23  7292.72   +1.17%  -26.05%
         t                                             
 .SBITO  Ljubljan  <.SBITO   720.04   724.81   -0.66%  -22.23%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1381.32  1387.90   -0.47%  -31.53%
                   >                                   
 .BELEX  Belgrade  <.BELEX   650.86   652.51   -0.25%  -18.81%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   415.46   416.39   -0.22%  -26.87%
                   >                                   
                                                              
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   1.3840  -0.0130   +214bp    -2bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.8310   0.2300   +238bp   +28bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.7350   0.0000   +206bp    +9bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   1.4510   0.2750   +220bp   +27bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.7280  -0.0090   +228bp    +4bps
 RR                RR>                              s  
 PL10YT            <PL10YT   2.0670   0.0850   +239bp   +18bps
 =RR     10-year   =RR>                             s  
                   FORWARD                                    
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.82     0.43     0.38     1.83
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.59     0.60     0.60     0.63
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.84     0.78     0.76     1.22
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes                                     
         are for ask                                   
         prices                                        
         ********************************************         
         ******************                            
                                                              
   

 (Reporting by Jason Hovet in Prague, Anita Komuves in Budapest
and Alan Charlish in Warsaw; Editing by Alex Richardson)
  
 
 
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