BUDAPEST, April 15 (Reuters) - Central European currencies
opened broadly stronger on Thursday, with the Czech crown
holding around seven-month highs, and stock market gains were
expected to lend further strength to currencies.
At 0921 GMT, the crown <EURCZK=> and Poland's zloty
<EURPLN=> were both 0.1 percent stronger versus the euro, while
Hungary's forint <EURHUF=> added 0.2 percent.
"EUR/CE3 currency pairs are grinding slowly lower, supported
by stronger stocks," SEB analysts said in a note, adding that
the momentum could push them to levels stronger still.
Stock markets across the region gained in early trade, with
Prague <> rising 1.4 percent, Warsaw <> edging 0.3
percent higher and Budapest <> adding 0.2 percent.
In Poland, the market awaited inflation data due at 1200
GMT. Price growth is seen easing to 2.6 percent year-on-year,
from February's 2.9 percent. The central bank targets inflation
at 2.5 percent.
"Inflation is in a declining trend, which should continue at
least till July. However, if inflation proves higher than
consensus, this could be a factor cooling market optimism,"
Citibank wrote in a note to clients.
The bank also wrote it still believed there was a risk of FX
interventions if the zloty gained much, echoing Wednesday's
comments of Deputy Finance Minister Dominik Radziwill.
[]
Bank BPH wrote the weighing risk of further market
interventions would cool the zloty's appreciation. It said the
zloty on Thursday would be in a range of 3.85-3.89 against the
euro.
The forint extended its post-election gains after Sunday's
vote ushered the centre-right Fidesz party into power with a
good chance of winning a large enough majority in an April 25
runoff to pass deep public sector reforms. []
Romania's leu <EURRON=> dropped 0.1 percent in early trade
and markets were watching a central bank event starting at 0700
GMT for any comments on currency strength, which has prompted
interventions to weaken the unit and protect exporters.
"The market already suspects that below 4.1 they are bidding
through a couple of local banks," a dealer in Bucharest said.
"Otherwise I don't think they will say anything directly."
"I think the entire region, everyone will keep an eye on
Greek developments and maybe Poland CPI," the dealer added.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.026 25.045 +0.08% +5.16%
Polish zloty <EURPLN=> 3.859 3.862 +0.08% +6.35%
Hungarian forint <EURHUF=> 261.77 262.36 +0.23% +3.28%
Croatian kuna <EURHRK=> 7.252 7.256 +0.06% +0.79%
Romanian leu <EURRON=> 4.137 4.136 -0.02% +2.43%
Serbian dinar <EURRSD=> 99.16 99.58 +0.42% -3.31%
All data taken from Reuters at 0921 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Gergely Szakacs;
Editing by Neil Stempleman)
