PRAGUE, Aug 6 (Reuters) - Central European currencies
steadied on Thursday to recoup some losses from this week, with
the crown a touch up before a Czech central bank decision
expected to leave interest rates at a record low for now.
Czech policymakers end the latest round of policy meetings
in central Europe at midday, and a Reuters poll gave a majority
of just one in forecasting interest rates will stay at 1.5
percent on Thursday. []
The crown <EURCZK=>, after dropping 1.5 percent this week to
a three-week low, held steady at 25.942 per euro on Thursday.
"The crown has moved back to a level that the central bank
is probably happy with," one Prague dealer said. "If there was a
change, it could move the market."
The central bank has forecast an average crown exchange rate
of 26.6 to the euro.
Poland's zloty <EURPLN=> was a touch down from almost
seven-month highs, bidding at 4.126 to the euro by 0734 GMT.
Dealers said some positive spillover from a well-bid 2-year bond
tender on Wednesday could still continue today.
"(The) good mood might still prevail at today's session (on
the bond market) due to yesterday's successful 2-year bond
tender," Bank BPH analysts said in a note.
"However, a more decisive weakening of the zloty and more
sour mood among investors could put a question mark next to
further yield drops at the shorter end of the curve today."
Hungary's forint <EURHUF=> was steady at 268.27 to the euro,
and the Romanian leu <EURRON=> dipped to 4.207.
Markets were also looking to central banks in the euro zone
and Britain to leave interest rates unchanged on Thursday.
Romania cut interest rates by a half percentage point this
week to bring its rate to 8.5 percent, on par with Hungary,
where rate setters cut by a bigger than expected 100 basis
points last week.
Polish central bankers, who along with the Czechs have taken
rates to record lows, held borrowing costs steady at 3.5 percent
last week.
Central banks in the region have eased rates this year to
boost economies that have been among the worst hit in the
economic crisis, although Poland has avoided the contraction its
more export-oriented neighbours have seen. But analysts say
there are some signs that economic falls may have hit bottom.
Czech trade data on Thursday showed the double digit drop in
exports slowed in June, although imports fell more to put the
country's balance in surplus. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.942 25.952 +0.04% +3.13%
Polish zloty <EURPLN=> 4.126 4.117 -0.22% -0.27%
Hungarian forint <EURHUF=> 268.27 268.4 +0.05% -1.76%
Croatian kuna <EURHRK=> 7.34 7.339 -0.01% +0.34%
Romanian leu <EURRON=> 4.207 4.197 -0.24% -4.58%
Serbian dinar <EURRSD=> 93.227 93.217 -0.01% -4.02%
All data taken from Reuters at 0935 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Ruth Pitchford)
