WARSAW, Dec 2 (Reuters) - Emerging European currencies edged
higher on Wednesday following strong gains the previous session,
with investors' appetite for riskier assets staying firm on
improving economic outlooks in the region.
Markets have been jolted in the past week with worries of
spreading debt woes from countries like Dubai or Ukraine that
have highlighted central Europe's own struggles with mounting
government debt as the region pulls out of the economic crisis.
The region has rebounded strongly, underpinned by purchasing
managers' indices in the Czech Republic and Poland returning to
positive territory for the first time in more than a year this
week to signal an economic pickup. []
"I see appetite for CEE currencies and the zloty has the
biggest potential due to its strong data," said one Warsaw-based
dealer. "For as long as there's no new bad news coming from
Dubai, units should gain with the zloty going even below 4.0 to
the euro till end-year."
At 0823 GMT the Polish zloty <EURPLN=> and Hungary's forint
<EURHUF=> were both 0.3 percent stronger to the euro while the
Czech crown <EURCZK=> was up 0.2 percent to the common currency.
Strategists have forecast gains for currencies in the coming
months and have been most bullish on the zloty as Poland has
been the only in the region to avoid recession, and posted
better-than-expected third quarter economic growth on Monday.
The dealer also said he expected the forint to gain as well
to around 263.0-265.0 to the euro in the mid-term, but he was
not bullish on the crown, although the currency may track peers.
The crown has traded in a wide range in the past month, and
dealers expect volatility to remain high until the new year as
liquidity stays low.
Last week emerging markets took a hammering when concerns
over Dubai's payment of its debt rose, although the dollar has
since retreated and raised risk appetite.
In Romania, the leu <EURRON=> missed out on gains to lose
0.1 percent to the euro.
But dealers said the currency may rejoin the region's firmer
trend after a runoff presidential vote at the weekend that could
end political turmoil that started with the country's government
collapse in October.
"The closer we get to elections, the tighter the link with
the region," one dealer said. "We are normalising again, many
expect Romania to have a government soon and we are joining
regional trends again."
The second presidential runoff is due on Sunday Dec. 6 and
the country's leftist leader Mircea Geoana is expected to unseat
incumbent President Traian Basescu in one of the country's most
important votes since the fall of communism in 1989.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.888 25.93 +0.16% +3.34%
Polish zloty <EURPLN=> 4.101 4.114 +0.32% +0.34%
Hungarian forint <EURHUF=> 270.93 271.8 +0.32% -2.72%
Croatian kuna <EURHRK=> 7.31 7.307 -0.04% +0.75%
Romanian leu <EURRON=> 4.247 4.242 -0.12% -5.48%
Serbian dinar <EURRSD=> 95.12 95.23 +0.12% -5.93%
All data taken from Reuters at 0823 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets: All
emerging market news []
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(Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; editing by Chris Pizzey)
((dagmara.leszkowicz@thomsonreuters.com, RM:
dagmara.leszkowicz.reuters.com@reuters.net, tel +48 22 653
9718))
