By: The Quinnipiac University Economics Research Team, Kyle Del Balso
The majority of the Central European currencies gained value, with the exception being the Romanian Leu. The Hungarian Forint and the Polish Zloty experienced weaker domestic currencies at the beginning of the period but ultimately ended with a stronger currency. Down less than half a percent, the Romanian Leu was the only CEE currency that never appreciated.
The Forint and Zloty ended the period gaining approximately a quarter of a percent and three quarters of a percent in value, respectively. The Czech Koruna experienced the highest appreciation of all currencies, strengthening by nearly 1.5%.
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, Koruna, and Zloty ended the period less than one standard deviation below their three month average, while also experiencing an increase in its value. The Leu finished the two weeks with a weakening in its currencies and fell more than one standard deviation below their three month average.
As each country attempts to restore their economies, it will be interesting to watch the relative movement in the exchange rates.