* FX mixed, Hungarian forint extends gains
* European shares up
* Keenly awaited Hungarian reform plan due on Tuesday
BUCHAREST, Feb 25 (Reuters) - Emerging European currencies
were mixed on Friday, helped by rising stocks and hopes the
world can weather the volality in oil prices, while the
Hungarian forint extended its gains ahead of a much-awaited
fiscal reform plan.
By 0900 GMT, the Polish zloty <EURPLN=> firmed 0.2 percent
and the Hungary's forint <EURHUF=> was 0.1 percent up, while the
Czech crown <EURCZK=> and the Romanian leu <EURRON=> were flat.
"We foresee slight recovery in the region's FX," said one
dealer in Bucharest. "European and Asian stocks opened higher to
provide brief support but uncertainty over Libya still weighs."
Stocks recovered on Friday after heavy selling this week on
hopes that a recent surge in prices may have been overdone,
though traders said the situation was still too fluid to take
any aggressive bets.[]
European shares also rose, breaking a five days of falls.
[]
"The sentiment on the global markets, now especially focused
on the events in North Africa, will be the key factor for the
zloty today," Bank BPH analysts wrote in the morning note.
"If risk aversion does not recede, the Polish currency may
end the week at the level over 4 against the euro."
On Thursday the Polish zloty <EURPLN=> briefly dipped
through the key psychological level of 4.0 against the euro on
Libya worries and fading expectations of quick rate hike.
In Hungary, a government spokesman said the government would
discuss much-awaited structural reforms on Saturday and announce
the plans on Tuesday []. Dealers said the prospect
of these has boosted the currency as well as lowering bond
yields after auctions were heavily subscribed ID:nLDE71N17U].
Within the region the Czech crown would outperform its peers
if global sentiment turns durably risk-averse as the currency is
traditionally seen as the region's safe haven, analysts say.
"Furthermore, the correction due after the swift
appreciation at the beginning of the year against EUR has
happened already," Societe Generale said in a weekly emerging
markets report.
"In EMEA, CEE currencies currently appear more attractive
than (South African rand, Turkish lira and Israeli shekel) due
to the geopolitical risk, intervention risk as well as
valuation," it added.
The crown has lost 2.3 percent since hitting a 27-month high
at the beginning of February, but still trades 2 percent higher
since the start of the year.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.517 24.493 -0.1% +1.97%
Polish zloty <EURPLN=> 3.981 3.99 +0.23% -0.58%
Hungarian forint <EURHUF=> 273.29 273.55 +0.1% +1.72%
Croatian kuna <EURHRK=> 7.421 7.419 -0.03% -0.55%
Romanian leu <EURRON=> 4.226 4.23 +0.09% +0.17%
Serbian dinar <EURRSD=> 103.28 103.05 -0.22% +2.56%
All data taken from Reuters at 1001 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux, writing by Radu Marinas; editing
by Stephen Nisbet)
