* FX firm, crown helped by positive industry growth
* Leu slips on repatriation
* Hungary markets eye final bond sale of 2009
By Jason Hovet
PRAGUE, Dec 30 (Reuters) - Central European currencies
mostly firmed on Wednesday, led by Poland's zloty and gains for
the Czech crown following the first rise in industrial output in
a more than a year.
Romania's leu <EURRON=> was the only major currency to slip,
falling to a two-week low at 4.229 to the euro as companies
geared up for repatriation. But dealers across the region said
trading remained subdued before the new year.
"It's all very illiquid," a Budapest-based dealer said,
adding zloty strength would bolster the region this week.
"With the zloty stronger, I don't see much weakening today
and tomorrow."
The zloty <EURPLN=> is seen firming the most of central
Europe's currencies next year, underpinned by a stronger
economic recovery. It is 20 percent down from 2008 highs but
about level since the start of this year. []
It rose 0.4 percent to 4.12 to the euro by 0952 GMT.
The crown <EURCZK=> wiped out early losses and was bid 0.3
percent up on the day at 26.29 to the euro, lifted by the first
year-on-year rise in industrial output since September 2008,
although the growth was still below analysts' expectations.
[]
Czech dealers expect the crown to start 2010 weaker, and
said current levels on the zloty could attract more investors to
the zloty/crown trade in favour of the Polish unit <PLNCZK=REU>.
"It looks like some people are putting on more intra-region
trades," a Prague dealer said. "But the first week of the new
year will show whether this (zloty/crown) trade is for real."
Central European economies have shaken off the worst of
economic crisis in the last half of 2009, and while foreign
orders have started to pick up, high unemployment and widening
budget deficits are tempering recovery.
Hungary's forint <EURHUF=> also inched up to 272.2 per euro
while local bonds were quiet before the final auction of the
year there later in the day.
On Wednesday, Hungary posted only its second quarterly
current account surplus in 14 years in the third quarter with
exports rising for the first time in a year. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 26.292 26.365 +0.28% +1.75%
Polish zloty <EURPLN=> 4.122 4.14 +0.44% -0.17%
Hungarian forint <EURHUF=> 272.17 272.75 +0.21% -3.17%
Croatian kuna <EURHRK=> 7.289 7.293 +0.05% +1.04%
Romanian leu <EURRON=> 4.229 4.216 -0.31% -5.07%
Serbian dinar <EURRSD=> 95.77 96.28 +0.53% -6.57%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR +20 basis points to 118bps over bmk*
7-yr T-bond CZ7YT=RR -9 basis points to +83bps over bmk*
10-yr T-bond CZ10YT=RR +4 basis points to +67bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1052 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; editing
by Patrick Graham)
