* Hungarian budget deficit rise adds uncertainty
* Polish government spending slower than planned
* Czech unemployment dips in September
BUDAPEST, Oct 8 (Reuters) - Emerging European currencies
opened marginally weaker on Friday, with the forint slightly
extending Thursday's losses after budget data showed Budapest
must keep an iron grip on fiscal policy in the months ahead.
At 0748 GMT, the forint <EURHUF=> was 0.1 percent weaker
versus the euro, and both the Polish zloty <EURPLN=> and the
Czech crown <EURCZK=> were trading 0-0.1 percent weaker against
the single European currency.
Data showed late on Thursday that Hungary's budget deficit
<HUDEF=ECI> grew slightly in September, to 125 percent of the
full-year target, but analysts said the goal could still be
achieved by end-year with very tight fiscal policy.
[]
One dealer said the size of the deficit was adding an
element of uncertainty to the market, though a recent forint
retreat from stronger levels around 270 to the euro was led
mainly by technical factors.
"It was a bit overdone at the 269 levels, so there was a
correction and global sentiment has also turned a bit for the
worse," a Budapest-based currency dealer said. "There isn't much
juice to fuel further gains today, in my view."
"There is some uncertainty in the market regarding the
deficit, because this 125 percent is a lot, this may have also
played into the retreat but this is just a very minor
uncertainty."
The centre-right government which took office in May has
pledged to meet this year's budget deficit target of 3.8 percent
of gross domestic product, agreed under a financing deal with
the International Monetary Fund and the European Union that
expired this month.
Prime Minister Viktor Orban has said the government will
consider what further measures, if any, are needed to meet the
full-year target once the September budget figures are known.
In contrast, Poland's central government budget deficit
stood at 39.5 billion zlotys at the end of September, better
than the original budget schedule, as spending is proceeding
more slowly than planned. []
The 2010 Polish budget law envisages a deficit of 52.2
billion zlotys, but the cabinet has said it now expects it to
come in lower, at a touch above 48 billion zlotys.
In the Czech Republic, one of the region's more able bodied
economies, unemployment dipped to 8.5 percent of the workforce
in September, data showed on Friday. <CZ/ECON04> <CZ/ECON15>
<ECONCZ>. []
Romania's leu <EURRON=> was also marginally weaker in thin
trading, and dealers said there was a lack of interest in
trading the unit because of increased political risk and a
history of suspected central bank covert intervention.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.508 24.501 -0.03% +7.39%
Polish zloty <EURPLN=> 3.982 3.976 -0.15% +3.06%
Hungarian forint <EURHUF=> 274.29 274 -0.11% -1.44%
Croatian kuna <EURHRK=> 7.315 7.315 0% -0.08%
Romanian leu <EURRON=> 4.274 4.27 -0.09% -0.86%
Serbian dinar <EURRSD=> 105.863 105.85 -0.01% -9.43%
All data taken from Reuters at 0948 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, Writing by Gergely Szakacs,
editing by Tim Pearce)
