Currencies edge higher on Brexit deal hopes

• The Czech crown edged 0.1% up to 25.618, clinging close to three-month highs. The Romanian leu was flat.
• If Boris Johnson manages to push his deal through the parliament this week, the crown may add to its gains and move close to 25.50 to euro.

BUCHAREST: Central European currencies edged up on Monday after the British parliament forced prime minister Boris Johnson to seek an extension to an Oct. 31 deadline for leaving the European Union, reducing expectations of a 'no deal' Brexit.

Johnson's plan to put his Brexit withdrawal deal to British lawmakers on Saturday was thwarted when they voted to withhold a decision and requested him to seek a third postponement of Britain's departure from the bloc.

At a rare Sunday meeting of ambassadors of the 27 states that will make up the EU after Brexit, the diplomats decided to forward Johnson's deal to the European Parliament for its required approval.

By 0910 GMT, the Polish zloty and Hungary's forint each firmed about 0.2% to trade at 4.2765 and at 330.25 to the euro respectively.

The Czech crown edged 0.1% up to 25.618, clinging close to three-month highs. The Romanian leu was flat.

"If Boris Johnson manages to push his deal through the parliament this week, the crown may add to its gains and move close to 25.50 to euro," CSOB/KBC analysts said in a note.

Elsewhere, Romania holds a tender to sell 500 million lei of June 2024 treasury bonds.

"The market mood remains volatile due to Brexit uncertainties but we should see the auction filled around 3.85% (against last month's 3.91%)," ING said.

Regional stocks mostly rose amid signs of progress in the United States-China trade talks, with Warsaw and Bucharest both gaining around 0.6% on the day.