(Adds forint record low, new prices throughout.)
By Sandor Peto and Jason Hovet
PRAGUE, Jan 29 (Reuters) - Central European currencies
weakened on Thursday as a rise in U.S. jobless claims added to
an increase in risk aversion in global markets, while the
region's economies continued to feel the impact of the global
crisis.
Hungary's forint <EURHUF=> led the losses and hit an
all-time low at 291.50 to the euro in illiquid late trade before
rebounding to 290.75 by 1716 GMT, down 1.69 percent from
Wednesday.
Poland's zloty reversed Wednesday's gains and eased 0.89
percent to 4.396 per euro.
"Equity indices fall, this in turn means currencies in
emerging markets fall and put pressure on (Hungarian) bonds,
that's the story," one Budapest-based fixed income dealer said.
"The U.S. released worse than expected figures in the
afternoon and following that selling pressure started."
A jump in U.S. jobless claiming benefits highlighted global
economic problems and their likely impact on the region where
economies are slowing down, straining state budgets, and central
banks push ahead with looser monetary policy.[]
Hungary launched a $4.5 billion package of tax changes on
Thursday to combat the economic crisis, which analysts said was
a step in the right direction, but of little help to the economy
which is seen contracting by 2.5-3 percent this year.
The region's largest economy, Poland, grew 4.8 percent last
year, although it is slowing quickly in the global slump.
[]
"The data shows that the last three months of 2008 brought a
sharp slowdown, which supports the case for more interest rate
cuts," said Marta Petka-Zagajewska, economist at Raiffeisen
Bank.
The leu <EURRON=> eased by only 0.35 percent to 4.251 to the
euro after Romania started talks with the European Commission on
a potential rescue loan to shore up its budget. []
Central European stock exchanges traded around 1 percent
lower on Thursday after strong gains earlier in the week.
Data this month has pointed to a deeper than previously
thought slowdown for central Europe's export-reliant economies
as demand collapses in the struggling euro zone.
Poland cut interest rates more than expected to 4.25 percent
on Tuesday as it battles to stay out of recession.
Serbia's central bank held its key rate at 16.5 percent on
Thursday and, despite expectations, offered no liquidity boost
through amended reserve requirement rules. []
The country's government adopted a 1.2 billion euro economic
stimulus package on Thursday, 20 percent more than earlier
planned.[]
The dinar <EURRSD=> trimmed some gains after the central
bank decision, but was still up 0.82 percent. On Wednesday the
central bank intervened twice to prop up the currency after it
hit an all-time low. []
The Czech crown <EURCZK=> dipped 0.57 percent from
Wednesday's domestic close to 27.58 per euro.
"Sentiment is fragile and it is impossible to expect a
definitive turnaround," said Lubos Mokras, analyst at Ceska
Sporitelna bank.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 27.58 27.422 -0.57% -3%
Polish zloty <EURPLN=> 4.396 4.357 -0.89% -6.39%
Hungarian forint <EURHUF=> 290.75 285.84 -1.69% -9.36%
Croatian kuna <EURHRK=> 7.365 7.365 0% 0%
Romanian leu <EURRON=> 4.251 4.236 -0.35% -5.57%
Serbian dinar <EURRSD=> 94.066 94.838 +0.82% -4.88%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +22 basis points to +108bps over bmk*
4-yr T-bond CZ4YT=RR -3 basis points to +104bps over bmk*
8-yr T-bond CZ8YT=RR -11 basis points to +120bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -1 basis points to +316bps over bmk*
5-yr T-bond PL5YT=RR -2 basis points to +255bps over bmk*
10-yr T-bond PL10YT=RR -3 basis points to +243bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +5 basis points to +830bps over bmk*
5-yr T-bond HU5YT=RR +9 basis points to +776bps over bmk*
10-yr T-bond HU10YT=RR +12 basis points to +607bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1816 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Sandor Peto/Jason
Hovet)
