(Adds dinar fall, fixed income, detail)
WARSAW, Jan 28 (Reuters) - Emerging European currencies were
stronger in early trade on Wednesday, bolstered by a rally in
global stocks and a rise in the euro against the dollar.
At 0917 GMT, the Hungarian forint <EURHUF=> was 0.6 percent
up against the euro, while the Czech crown <EURCZK=> was almost
0.9 percent higher against the common currency.
"It looks like there is some relief for emerging markets,"
said a Prague trader. "Stocks are holding up, the euro/yen found
some base and the dollar is weakening (against the euro). All
this makes CEE currencies nicely offered."
The Polish zloty followed its regional peers, but later
surrendered some gains. Dealers said the currency was moving in
a range, adding there was a possibility it may firm further.
"The zloty may strengthen to even around 4.25 to the euro,"
a Warsaw-based dealer said, citing the dollar's weakening
against the common currency and gains on global stocks.
Analysts said markets were awaiting the rate decision from
the U.S. Federal Reserve and the statement afterwards. The Fed
is also expected to discuss extraordinary measures to improve
financial market operations.
Elsewhere in the region Serbia's dinar <EURRSD=> bucked the
firmer trend, hitting a new all-time low of 97.50, but recouped
some of the losses after the central bank called a fixing
session, offering banks a chance to buy hard currency.
On bond markets, prices in Hungary as well as in Poland were
roughly stable, while Czech paper weakened.
Prague dealers cited speculation the Czechs' planned
eurobond issue may be priced at a high spread over mid-swaps
after a Polish issue last week was priced at 300 basis points
over swaps.
The Czech Republic said on Monday it had mandated three
banks to manage a euro-denominated bond issue, giving no signs
of the timing or size of the offer. []
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 27.523 27.758 +0.85% -2.8%
Polish zloty <EURPLN=> 4.375 4.387 +0.27% -5.94%
Hungarian forint <EURHUF=> 284.62 286.4 +0.63% -7.4%
Croatian kuna <EURHRK=> 7.372 7.363 -0.12% -0.09%
Romanian leu <EURRON=> 4.223 4.23 +0.17% -4.94%
Serbian dinar <EURRSD=> 96.627 96.525 -0.11% -7.4%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR -19 basis points to 75bps over bmk*
4-yr T-bond CZ4YT=RR -5 basis points to +91bps over bmk*
8-yr T-bond CZ8YT=RR -2 basis points to +124bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR 0 basis points to +304bps over bmk*
5-yr T-bond PL5YT=RR -2 basis points to +245bps over bmk*
10-yr T-bond PL10YT=RR +2 basis points to +240bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +6 basis points to +761bps over bmk*
5-yr T-bond HU5YT=RR +9 basis points to +713bps over bmk*
10-yr T-bond HU10YT=RR +17 basis points to +551bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0917 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets: All
emerging market news []
Spot FX rates Eastern Europe spot FX <EEFX=>
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
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(Reporting by Reuters bureaux, Writing by Dagmara Leszkowicz;
Editing by Toby Chopra)
