PRAGUE, Nov 22 (Reuters) - Hungary's forint hit a new all-time low on Monday and the Polish zloty was stuck around its weakest levels in 12 years, under pressure from a strong U.S. dollar and worry over the worsening COVID-19 situation in central Europe.
The forint fell 0.5% to 369.67 to the euro.
Even with interest rates rising quickly around the region to counter an inflation spike, central European assets are being hurt by renewed worries about lockdowns and investor appetite stunted by the stronger dollar.
Register now for FREE unlimited access to reuters.com
Political tensions are also appearing with a migrant crisis on Poland's border with Belarus, while Warsaw and Budapest are still locked in disputes with Brussels. read more
On Monday, the Czech Republic and Slovakia are following examples in Austria and parts of Germany by implementing new COVID-19 measures against the unvaccinated as virus infections hit new highs. Austria is also the first to re-impose a full lockdown. read more
"The lockdown in Austria and the concerns that German measures could be coming has increased fears of potential economic effects and strengthened risk aversion," a Budapest trader said.
The zloty had dropped 0.5% to 4.716 to the euro by 0923 GMT.
"The outlook for the Polish currency remains moderately pessimistic, although the recent series of continuous declines in the value of the Polish currency creates an increasing need for a technical adjustment," Bank Millennium said in a note.
"Ultimately, however, the EUR / PLN rate should move towards the significant barrier of 4.73."
The Czech crown was at its lowest since Nov. 4, the day the central bank surprised with its biggest rate hike - at 125 basis points - in nearly a quarter-century.
Czech central bank Tomas Holub said in a podcast with Patria Finance's chief economist that he would not expect any big surprise on tightening going ahead.
On stock markets, indices around the region dropped, led by a 0.7% fall in Budapest (.BUX).
Register now for FREE unlimited access to reuters.com
Reporting by Jason Hovet in Prague, Krisztina Than in Budapest and Alan Charlish in Warsaw; Editing by Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.
"low" - Google News
November 22, 2021 at 04:29PM
https://ift.tt/3czkTxR
Forint marks another new low, Zloty drifts near 12-year trough - Reuters
"low" - Google News
https://ift.tt/2z1WHDx
Bagikan Berita Ini
0 Response to "Forint marks another new low, Zloty drifts near 12-year trough - Reuters"
Post a Comment