Hungarian forint cuts losses after massive rate hike

(Updates with rate hike in Hungary)

PRAGUE, July 12 (Reuters) – The Hungarian forint pared losses on Tuesday after the central bank raised its base interest rate to a 14-year high in a bid to prop up the languishing currency and tackle the surge in inflation.

The move helped ease pressure on the forint, which, like other central European currencies, was weakening against a rising dollar.

The massive 200 basis point rate hike took the National Bank of Hungary’s key rate to 9.75%, the highest level since the start of the global financial crisis in late 2008.

The move was signaled by the central bank last week when it raised its one-week deposit rate.

As of 11:15 GMT, the EURHUF= forint was down 0.3% at 410.45 per euro, off the session low of 414.50 and a record low of 416.90 hit this month. this.

The weak forint has complicated the central bank’s efforts to rein in double-digit inflation and exposed Hungarian assets to any shifts in negative sentiment caused by soaring energy costs and war in neighboring Ukraine.

Elsewhere, the Romanian leu EURRON= held steady after data showed inflation topped 15% in June, but came in below expectations.

The Polish zloty EURPLN= traded down 0.3% at 4.820 per euro, reeling from growing fears over global growth due to the energy crisis in Europe and COVID-19 outbreaks in China.

The euro fell on Tuesday, almost touching parity with the US dollar, a threshold not crossed for two decades.

The Czech Koruna EURCZK= was flat at 24.610 per euro.

The Czech central bank maintained an intervention mandate to prevent the weakening. Central bank data last week showed foreign exchange reserves fell to 151.3 billion euros at the end of June, from a revised 156.4 billion in May.

CEEC

INSTANT TO

T-MARKETS

1315

HEC

CURRENCY

IES

Latest Previous Daily

To change

s

offer

close

change in 2022 EURCZK Czech

crown

=>

EURHUF Hungary

forint

=>

0

0

Polish EURPLN

zloty

=>

EURRON Romanian

them

=>

EURHRK Croatian

Kuna

=>

EURRSD Serbian

dinar

=>

0

0

To note:

calculated from

1800

Daily

HEC

change

Latest Previous Daily

To change

s

close

change to 2022 .PX

prague

.PX

1231.14 1231.61 -0.04%

N / A

00

.BUX

Budapest .BUX

38606.9 39151.3 -1.39% -23.88%

0

1

.WIG20 Warsaw

<.wig20>

>

.BETI Bucharest .BETI 12195.8 12188.8 +0.06% -6.63%

you

6

4

.SBITO Ljubljan <.sbito p>

a

P>

.CRBEX Zagreb

<.crbex>

>

.BELEX Belgrade <.belex>

15>

.SOFIX Sofia

<.sofix>

>

Yield

Yield

daily spread

(offer)

change vs Bund change

in

Czech

spread

Republic

CZ2YT=

2 years

RR>

s CZ5YT=

5 years

RR>

s CZ10YT

+0bps =RR

10 years =RR>

s

Poland

PL2YT=

2 years

RR>

sPL5YT=

5 years

RR>

PL10YT

10 years =RR>

s

FORWARD

3×6

6×9

9×12

3M

interba

nk

Czech

7.87

7.93

7.51

7.27

Representing

>

R=>

Hungary

13.08

1:20 p.m.

1:15 p.m.

11.16

>

=>

Poland

7.58

7.84

7.75

7.00

>

=>

To note:

are to be asked

ENG

prices

quotation

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Reporting by Jason Hovet in Prague, Anita Komuves and Gergely Szakacs in Budapest and Alan Charlish in Warasaw; Editing by Amy Caren Daniel and Aditya Soni

Laura T. Thrasher