BUDAPEST, Aug 31 (Reuters) - Hungary's forint led currency
losses in eastern Europe on Tuesday, hitting new lows against a
soaring Swiss franc and triggering concerns over Hungary's large
exposure to franc-denominated debt.
Asian stock markets fell as worries over the U.S. economy
triggered profit taking there and eastern Europe's stock markets
also opened sharply lower, with Budapest <> down one percent
and Warsaw <> falling 1.3 percent by 0713 GMT.
Czech stocks fell 0.9 percent <>
"Euro/franc at new lows should negatively affect the
Hungarian markets due to mounting CHF loan exposure concerns and
lack of new external assistance for the time being," Unicredit
said in a daily morning note.
By 0715 GMT, the forint fell to 222 per Swiss franc, causing
unease in hundreds of thousands of Hungarian households holding
Swiss franc mortgages as their monthly loan repayments rise.
The Swiss franc, viewed as a safe haven at times of risk
aversion, rose to a record high against the euro on Tuesday and
also surged against the dollar.
"The bad mood has again reared its head. This
already sparked some losses in the forint yesterday," a
Budapest-based currency dealer said.
"On top of that, comments from our prime minister did not
exactly boost the forint either."
Prime Minister Viktor Orban said on Monday that it was in
the country's interest to sign loan agreements with the IMF if
necessary but not to have economic policy agreements with the
Fund. []
The Polish zloty was also weaker early on Tuesday on souring
global sentiment and falling stocks.
"In light of the not-so-positive global sentiment, the zloty
started the day with weakening (above 4 against the euro). In
our view, EUR/PLN will, however, stay below the technical
resistance level of 4.025," Citibank analysts wrote in their
morning note.
External factors overshadowed better than expected GDP data
on Monday, which showed Poland's economy expanding by a 3.5
percent in the second quarter, largely underpinned by domestic
demand. []
At 0713 GMT the forint <EURHUF=> eased 0.8 percent against
the euro and the zloty <EURPLN=> was down 0.6 percent. The crown
<EURCZK=> dropped 0.2 percent while the leu <EURRON=> was down
0.4 percent.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.825 24.779 -0.19% +6.01%
Polish zloty <EURPLN=> 4.008 3.985 -0.57% +2.4%
Hungarian forint <EURHUF=> 286.84 284.65 -0.76% -5.75%
Croatian kuna <EURHRK=> 7.267 7.268 +0.01% +0.58%
Romanian leu <EURRON=> 4.255 4.237 -0.42% -0.41%
Serbian dinar <EURRSD=> 105.007 104.97 -0.04% -8.69%
All data taken from Reuters at 0913 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 []
Spot FX rates Eastern Europe spot FX <EEFX=>
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 []
(or an analysis on the impact of the stronger franc on
Hungary's economy please click on [])
(Reporting by Reuters bureaus, Writing by Krisztina Than;
Editing by John Stonestreet)
