* Hungary annual inflation edges up to 4.1 pct in Feb
* Czech economy expands 0.3 pct qtr/qtr in Oct-Dec
* High inflation reduces scope for Romania rate cuts
* Zloty falls through psychological 4/euro level
BUCHAREST, March 11 (Reuters) - Emerging European currencies
were mixed in early trade on Friday and stocks dipped after a
massive earthquake hit Japan, adding to an already bleak mood on
Asian markets.
Hungary's forint <EURHUF=> was a touch lower against the
euro by 0851 GMT after data showed annual inflation edged up to
4.1 percent in February, while fourth-quarter economic growth
was revised slightly lower. []
"The February inflation figures do not change our overall
view on Hungarian monetary policy," said Nordea analyst Annika
Lindblad.
"Four new members will join the MPC from the March meeting,
which most likely means that the rate hike cycle will remain
paused. We see a risk of rate cuts during the coming months."
Romania's stock market <> fell 1 percent and Warsaw
<> and Prague <> bourses also weakened. Budapest shares
<> bucked the trend, edging up 0.1 percent.
"Worse sentiment on the global markets stems from woes
concerning the debt of several eurozone members as well as
tensions in Libya. On top of that there was an earthquake in
Japan," CitiHandlowy analysts said in a note.
The Czech crown was nearly flat after data showed the
economy expanded by 0.3 percent in the fourth quarter from the
previous three-month period, slower than previously thought and
adding to arguments that the central bank will not hurry to
raise interest rates. []
Dealers and analysts said the data was mixed as industrial
output figures showed a pickup. Interest rate swaps fell around
5 bps in the morning after the data, but they mostly tracked
euro rates.
"Along with the developments in wages and inflation, the GDP
data is another number that speaks for a moderate stance at the
central banks in the nearest months," CSOB head of macroeconomic
research Petr Dufek said.
The Polish zloty <EURPLN=> slipped through the key
psychological level of 4 against the euro late on Thursday and
nudged even lower in early session on Friday.
The deputy head of Poland's central bank said on Thursday he
does not expect the Polish zloty to strengthen significantly
this year, which analysts said had an impact on the market.
[]
Romania's leu <EURRON=> was nearly flat after a central
banker said its monetary policy stance was adequate at the
moment, though inflationary risks are bigger than initially
envisaged. []
Higher than expected February inflation prompted some
analysts to change interest rate forecasts, saying it will be
difficult for the central bank to cut borrowing costs as long as
the economy remains weak.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.334 24.347 +0.05% +2.74%
Polish zloty <EURPLN=> 4.017 4.01 -0.17% -1.47%
Hungarian forint <EURHUF=> 273.84 273.35 -0.18% +1.51%
Croatian kuna <EURHRK=> 7.39 7.39 0% -0.14%
Romanian leu <EURRON=> 4.196 4.194 -0.05% +0.88%
Serbian dinar <EURRSD=> 102.91 103.09 +0.17% +2.93%
All data taken from Reuters at 0951 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
(Reporting by Sam Cage and Reuters bureaus)
