Currency
Currencies ease after Fed pushes back rate-cut hopes
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 signaled 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)
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