BUDAPEST, July 2 (Reuters) - Regional currencies rebounded
from recent losses as the euro gained versus the dollar,
spelling improved risk appetite, and investors kept a keen eye
on Romania's ongoing IMF negotiations.
The Hungarian forint <EURHUF=>, a recent underperformer,
lead gains at 0.8 percent versus the euro at 0709 GMT, and also
clawed its way back against the Swiss franc <EURCHF=>, which set
new highs against the forint this week, trading at 214.40 after
nearly breaking the 219 level on Thursday.
The Polish zloty <EURPLN=> added 0.7 percent and the
Romanian leu <EURRON=> 0.6 percent. The Czech crown <EURCZK=>,
the only emerging European currency to post gains versus the
euro so far this year, was 0.2 percent stronger.
"The euro broke a key technical level and that gave a boost
to the region's currencies," a Budapest-based dealer said.
"Eurozone PPI and U.S. payroll figures will set core market
risk appetite and the course of emerging market assets today.
For the forint, that probably means we'll head south for a
while, but we'll close on the weak side of (EUR/HUF) 285."
Investors eyed Romania's discussions with the IMF, which
will discuss whether to release the next EUR 850 million tranche
of aid the the country.
"If the IMF approves the scheduled disbursement of the fifth
tranche, as we expect, this would translate in a relief for the
RON, which is around 2.5 percent weaker than last week, when the
decision of the Constitutional Court put pressure on Romanian
assets," UniCredit said in a note.
Analysts remained wary of a sour turn in the economy,
however, with UniCredit saying the outlook would prompt central
banks to postpone interest rate hikes in the region to 2011.
The Czech central bank says risks to its macroeconomic
forecasts remain balanced, but uncertainty also remain high.
[]
In Poland, the central bank's inflation projection showed
economic growth may accelerate to 3.2 percent this year and
should speed up further in 2011 to 4.6 percent mainly thanks to
increased public investment. []
Markets also eyed the upcoming second round of Poland's
presidential elections, to be held on Sunday.
"The vote will be a close call and will be a determinant for
the political picture in the coming 5 years," Cheuvreux analyst
Simon Quijano Evans said in a note.
"If Mr. Komorowski wins, we can expect a calmer picture as
far as presidential-government relations are concerned."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.688 25.726 +0.15% +2.45%
Polish zloty <EURPLN=> 4.136 4.165 +0.7% -0.77%
Hungarian forint <EURHUF=> 284.81 287.16 +0.83% -5.08%
Croatian kuna <EURHRK=> 7.194 7.194 0% +1.6%
Romanian leu <EURRON=> 4.314 4.34 +0.6% -1.78%
Serbian dinar <EURRSD=> 104.45 104.49 +0.04% -8.2%
All data taken from Reuters at 0909 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux, writing by Marton Dunai, editing
by Toby Chopra)
