Forint underperforms; investors unwind zloty short bets



By Anita Komuves

BUDAPEST, April 16 (Reuters) - The Hungarian forint extended losses on Friday, while other central European currencies were stable or slightly higher, as investors unwound their short positions on the zloty.

The Hungarian forint EURHUF= slid 0.42% to 360.80 per euro, underperforming its peers. It has lost 1% this week.

The currency weakened in low liquidity because of a zloty-forint flow, traders in Budapest said, adding that the forint was also due for a correction after steady gains in the past few weeks.

"Many investors had shorted the zloty in anticipation of the supreme court decision about the Swiss franc mortgages, which previously caused a zloty-forint flow in the other direction," one trader said.

"As the decision is being postponed once again, they are closing those positions."

Poland's Supreme Court announced last Friday that a sitting concerning the issue of Swiss francs would be postponed until May 11.

The Polish zloty EURPLN= firmed 0.09% on the day, trading at 4.5480 to the euro.

Poland's central bank is set to release March net inflation data at 1200 GMT.

Based on the breakdown of March inflation data, Commerzbank expects core inflation to rise, which is "bad news for the zloty exchange rate as it will shrink Poland's real interest rate in the face of unchanged monetary policy stance of the central bank."

Elsewhere, the Czech crown EURCZK= edged up 0.08% to 25.9030 versus the common currency.

The Romanian leu EURRON= was flat a day after the firing of the health minister caused a political crisis, although a coalition government is expected to stay intact.

Romania's central bank saw no reason to further cut its benchmark interest rate from the current 1.25% level, Governor Mugur Isarescu said in an interview.

Stocks were mixed, with Budapest .BUX up 0.1% and Warsaw .WIG20 sliding 0.43%. Buchartest .BETI firmed 0.48%.

Prague's equities .PX were up 0.48% as Moneta Bank's MONET.PR shares gained 2.24% by 0912 GMT after the central bank approved an increase of PPF Group's holding in Moneta to 28.34%, the first step in a proposed merger of its local lending business with the bank.

CEE

SNAPSHO AT

MARKETS T

1109 CET

CURRENC

IES

Latest Previous Daily

Change

bid

close

change in 2021 EURCZK= Czech

<EURCZK= 25.9030 25.9250 +0.08% +1.26%

crown

>

EURHUF= Hungary <EURHUF= 360.800 359.3000 -0.42% +0.53%

forint >

0

EURPLN= Polish <EURPLN= 4.5480

4.5521 +0.09% +0.25%

zloty

>

EURRON= Romania <EURRON= 4.9260

4.9260 +0.00% -1.24%

n leu

>

EURHRK= Croatia <EURHRK= 7.5630

7.5625 -0.01% -0.21%

n kuna >

EURRSD= Serbian <EURRSD= 117.400 117.5500 +0.13% +0.14%

dinar

>

0

Note:

calculated from

1800

daily

CET

change

Latest Previous Daily

Change

close

change in 2021 .PX

Prague

.PX

1099.39 1094.110 +0.48% +7.03%

0

.BUX

Budapes .BUX

42669.7 42626.71 +0.10% +1.33%

t

0

.WIG20 Warsaw

.WIG20 2010.62 2019.29 -0.43% +1.34% .BETI

Buchare .BETI

11174.4 11120.99 +0.48% +13.96

st

5

% .SBITOP Ljublja <.SBITOP 1041.25 1035.64 +0.54% +15.59

na

>

% .CRBEX Zagreb

.CRBEX 1879.35 1882.17 -0.15% +8.05% .BELEX1 Belgrad <.BELEX1 760.94

750.72 +1.36% +1.65% 5

e

5>

.SOFIX Sofia

.SOFIX

513.36

514.30 -0.18% +14.71

%

Yield

Yield

Spread Daily

(bid)

change

vs Bund change

in

Czech

spread

Republi

c

CZ2YT=R

<CZ2YT=R 0.6430

0.0400 +134bp

+4bps R

2-year R>

s CZ5YT=R

<CZ5YT=R 1.4130 -0.0580 +203bp

-7bps R

5-year R>

s CZ10YT=

<CZ10YT= 1.8510 -0.0480 +212bp

-7bps RR

10-year RR>

s

Poland

PL2YT=R

<PL2YT=R 0.0990 -0.0020 +080bp

-1bps R

2-year R>

s PL5YT=R

<PL5YT=R 0.7860

0.0020 +140bp

-1bps R

5-year R>

s PL10YT=

<PL10YT= 1.4880

0.0340 +176bp

+1bps RR

10-year RR>

s

FORWARD

3x6

6x9

9x12

3M

interba

nk

Czech

CZKFRA

0.45

0.64

0.90

0.36

Rep

<PRIBOR=

>

Hungary HUFFRA

0.96

1.14

1.26

0.79

BUBOR=

Poland

PLNFRA

0.25

0.26

0.34

0.21

WIBOR=

Note:

are for ask

FRA

prices

quotes

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

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


Additional reporting by Luiza Ilie in Bucharest; Editing by Amy Caren Daniel

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