CEE Exchange Rates Report for October 23 – October 27

By: The Quinnipiac University Economics Research Team, Allison Goegel

CEE Currencies Index

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 100 at the start of the period. 

During the week of October 23rd – 27th, three Central European exchange rates strengthened. The Czech koruna (blue) finished the week .187% stronger. The Hungarian forint (green) was declining but finished the week minimally strengthening. The Polish zloty (red) declining this week by .139%. The Romanian leu (yellow) increased the most this week out of the 4 exchange rates tracked, increasing by .197%.

CEE Currencies Historical Trends

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. 

For the week of October 23rd – 27th, the Czech koruna (CZK) managed to remain below its lower bound while all others remain above. The Hungarian forint (HUF) reached its high bound this past week and is fluctuating above the average bound. The Polish zloty (PLN) alike to the Hungarian forint is fluctuating between the average bound and high bound currently. The Romanian leu (RON) is above its lower bound once again.

It is worth noting that after a period of remaining beyond their lower bound, the Hungarian forint and Polish zloty have made significant strengthening. Notably, the Polish zloty experienced this complete growth in the past two weeks, coming after the Polish central bank’s decision on October 4th to cut interest rates.