FX falls as Russian annexation spooks markets



By Alan Charlish

WARSAW, Sept 30 (Reuters) - Central European currencies slid on Friday as anxiety in the region's markets deepened before Russian President Vladimir Putin was due to proclaim Moscow's annexation of territory in Ukraine.

The Polish zloty EURPLN= and Hungarian forint EURHUF= have taken a hammering this week, buffeted by concerns over European energy security after gas leaks appeared in the Nord Stream pipelines.

Russia's annexation of the Russian-occupied areas of Donetsk, Luhansk, Kherson and Zaporizhzhia, which has been condemned in the West and beyond, has ratcheted up the tension even further.

"My guess is that investors are afraid of Putin," said Piotr Poplawski, senior economist at ING in Warsaw. "Who knows what will happen during the weekend."

At 0854 GMT the zloty was 0.34% weaker against the euro, with a higher-than-expected inflation reading of 17.2% year-on-year failing to provide a positive impulse.

"Russia is a question mark and the Ukrainian war... the market remains very volatile and I think there are fireworks ahead of us next week," said a Warsaw-based currency trader.

The forint was 0.28% softer at 421.60 at the end of a week that has seen it hit record lows.

"The main reason for the weakening was the pressure from the strong dollar and the rise in the gas prices but the central bank's announcement on Tuesday was oil to the fire," an FX trader in Budapest said.

The National Bank of Hungary said on Tuesday that it was ending its year-long rate hike cycle amid a slowing economy and that it will focus on liquidity tightening.

The Czech crown was 0.20% weaker against the euro at 24.604.

The Czech National Bank (CNB) kept interest rates unchanged on Thursday, as it said it would continue market interventions to prevent excessive currency swings.

Warsaw's WIG Banks stock index .BNKI was down 0.1%, with Getin Holding GTN.WA , the parent of Getin Noble Bank, falling over 5% after Poland's Bank Guarantee Fund has started its compulsory restructuring of the lender.

CEE

SNAPSHO AT

MARKETS T

1054

CET

CURRENC

IES

Latest Previou Daily

Change

s

bid

close

change in 2022 EURCZK Czech

<EURCZK 24.6040 24.5550 -0.20% +1.09% =

crown

=>

EURHUF Hungary <EURHUF 421.600 420.400 -0.28% -12.38% =

forint

=>

0

0

EURPLN Polish

<EURPLN 4.8710 4.8545 -0.34% -5.75% =

zloty

=>

EURRON Romanian <EURRON 4.9495 4.9515 +0.04% -0.03% =

leu

=>

EURHRK Croatian <EURHRK 7.5240 7.5275 +0.05% -0.09% =

kuna

=>

EURRSD Serbian <EURRSD 117.240 117.340 +0.09% +0.29% =

dinar

=>

0

0

Note:

calculated from

1800

daily

CET

change

Latest Previou Daily

Change

s

close

change in 2022 .PX

Prague

.PX

1124.24 1114.34 +0.89% #VALUE!

00

.BUX

Budapest .BUX

37662.1 37035.7 +1.69% -25.75%

7

9

.WIG20 Warsaw

<.WIG20 1379.45 1380.10 -0.05% -39.15%

>

.BETI Buchares .BETI 10665.2 10549.4 +1.10% -18.34%

t

5

4

.SBITO Ljubljan <.SBITO 955.59 955.83 -0.03% -23.89% P

a

P>

.CRBEX Zagreb

<.CRBEX 1900.99 1900.46 +0.03% -8.58%

>

.BELEX Belgrade <.BELEX 827.24 827.24 +0.00% +0.79% 15

15>

.SOFIX Sofia

<.SOFIX 583.44 585.29 -0.32% -8.22%

>

Yield

Yield

Spread Daily

(bid)

change vs Bund change

in

Czech

spread

Republic

CZ2YT=

2-year <CZ2YT= 6.0560 -0.2570 +429bp -19bps RR

RR>

s CZ5YT=

5-year <CZ5YT= 5.5640 0.0030 +360bp +10bps RR

RR>

s CZ10YT

<CZ10YT 5.4890 -0.0730 +337bp

+2bps =RR

10-year =RR>

s

Poland

PL2YT=

2-year <PL2YT= 7.4450 0.0790 +568bp +14bps RR

RR>

s PL5YT=

5-year <PL5YT= 7.4730 -0.0050 +551bp

+9bps RR

RR>

s PL10YT

<PL10YT 7.2610 -0.0200 +514bp

+7bps =RR

10-year =RR>

s

FORWARD

3x6

6x9

9x12

3M

interba

nk

Czech

<CZKFRA

7.29

7.28

6.98

7.24

Rep

><PRIBO

R=>

Hungary <HUFFRA

13.79

13.64

13.19

13.26

><BUBOR

=>

Poland

<PLNFRA

7.70

7.73

7.73

7.18

><WIBOR

=>

Note:

are for ask

FRA

prices

quotes

********************************************

******************


Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest, Editing by Angus MacSwan

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