BUDAPEST, April 20 (Reuters) - Hungary's forint lead gains
among central European currencies early Wednesday, buoyed by
stronger risk appetite, which also boosted stocks, as investors
focused on Polish inflation data later in the day.
The forint <EURHUF=> firmed 0.8 percent versus the euro by
0739 GMT as central European currencies recovered from falls
earlier this week after Standard & Poor's cut its rating outlook
on U.S. debt to negative from stable.
"The euro is gaining handsomely, it is now trading around
1.4420 so we are by and large back to levels before the S&P
outlook change, at least on the euro/dollar front," a
Budapest-based currency dealer said.
"There has been some improvement in risk appetite, so in
that regard, I would expect the forint to remain strong, but the
265 level looks like a pretty strong resistance," he said.
Stock markets across central Europe also rose, with the
Budapest blue chip index <> adding 1.5 percent, Bucharest
stocks <> gaining 1.2 percent and Warsaw <> rising
0.8 percent by 0742 GMT.
Analysts said the zloty <EURPLN=>, which gained 0.7 percent
in early trade, could strengthen further in the coming days on
growing appetite for risk globally.
"The zloty could strengthen against the basket of currencies
on the wave of global tendencies, it should fluctuate around
3.95-3.97 against the euro," Bank Pekao analysts wrote in their
daily report.
Investors will closely watch the publication of March net
inflation data due at 1200 GMT. The figure is expected to have
risen to 1.8 percent on an annual basis from 1.7 percent
reported for February.
The Czech crown <EURCZK=>, the region's safe-haven unit, was
stable in early trade after a political crisis had ended after
late night talks on Monday.
However, the government still faces a no-confidence vote
initiated by the leftist opposition, which will be held just
after the Easter break, on April 26.
"We view the government's status quo as market positive. The
no-confidence vote will be hard to pass, as the opposition would
need support of 19 rebels from the coalition parties," said
Pavel Sobisek, an analyst in UniCredit.
The leu <EURRON=> edged higher after a World Bank report
said Romania would lead economic growth among the newer European
Union members in 2012 and dealers said it was set to test
resistance at about 4.0710-4.0720 per euro, around the one-year
highs it hit last month. []
Markets are looking for some indication of the central
bank's preferred range for the leu after it said last month the
stronger currency -- which has risen more than 3 percent this
year -- was backed by economic fundamentals.
Analysts said that amounted to a verbal intervention because
a stronger currency could help tame inflation fuelled by surging
food and energy prices and reduce the need to raise interest
rates.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.159 24.163 +0.02% +3.48%
Polish zloty <EURPLN=> 3.963 3.992 +0.73% -0.13%
Hungarian forint <EURHUF=> 265.71 267.95 +0.84% +4.62%
Croatian kuna <EURHRK=> 7.354 7.359 +0.07% +0.35%
Romanian leu <EURRON=> 4.081 4.091 +0.25% +3.72%
Serbian dinar <EURRSD=> 101.18 101.4 +0.22% +4.69%
All data taken from Reuters at 0939 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
All data taken from Reuters at 0925 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux; Writing by Gergely Szakacs;
Editing by Toby Chopra)
