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‘Slight Improvement’ in Russia/Ukraine Conflict Spurs Strong Rebound in CEE FX

EM FX
  • The slight ‘improvement’ in Russia/Ukraine conflict following Zelensky's comment on NATO has generated a strong rebound in CEE currencies (which were the most vulnerable to the recent geopolitical risk).
  • PLN is the best performing currency among the EM world so far, up 4.2% against the USD, shortly followed by HUF (+3.9%).
  • The rebound on CZK was less significant (up 2.8% vs. USD).
  • Interestingly, TRY has not ‘reacted’ to the positive bounce in markets, and is already down 3% against the USD (weakest performing FX).

Source: Bloomberg

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