CEE Exchange Rate Report for June 10 – June 24

By: The Quinnipiac University Economics Research Team, Kyle Del Balso

Source: Eurostat and own calculations. Exchange rates are inverted to be EURO per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.

The majority of the Central European currencies lost value, with the exception being the Polish zloty. The Czech koruna and Romanian Leu experienced stronger domestic currencies at the beginning of the period but ultimately ended with a weaker currency. Up more than half a percent, the zloty was the only CEE currency that never depreciated.

The koruna and leu both lost approximately a quarter percent in value. The Hungarian forint experienced the largest depreciation of all currencies, weakening by nearly 2%.

Source: Eurostat and own calculations. Exchange rates are inverted to be EURO per local currency (i.e., an increase indicates a stronger domestic currency). The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.

The forint and leu ended the period less than one standard deviation below their three month average, while also experiencing a decrease in value. The koruna and zloty finished the two weeks relatively close to their respective three month averages, while experiencing no significant change in value.

This is Hungary’s first real drop in their exchange rates since April, and it will be interesting to see if it continues depreciating in the following weeks.