The lira gained for a second day on speculation the U.S. Federal Reserve will renew its commitment to asset buying, extending its loose monetary policy and boosting investors’ appetite for riskier assets.
The forint headed for the steepest three-day slide in more than a year on speculation a change of leadership at the central bank in March will make monetary easing more radical and weaken the currency.
Hungary’s Economy Ministry blamed Nouriel Roubini for the forint’s weakening to a seven-month low against the euro, saying Minister Gyorgy Matolcsy’s comments on the currency didn’t cause the depreciation.
Poland’s improving public finances aren’t enough for an upgrade at Moody’s Investors Service, even as the derivatives market deems the nation’s bonds as safe as French debt that’s rated four steps higher.
The Czech government’s funding costs fell to an all-time low for the fifth consecutive bond auction as the koruna’s appreciation to the strongest in four months added to expectations for interest-rate cuts to zero.
Poland is outperforming higher-rated Germany in the credit-default swap market, cutting the premium to the least since Lehman Brothers Holdings Inc. collapsed four years ago, helped by rule changes designed to limit speculation.