BUDAPEST, Nov 23 (Reuters) - Assets in the European Union's
emerging markets extended losses early on Tuesday as political
uncertainty in Ireland weighed on the euro and investors
digested news of fresh package of savings measures in Hungary.
Regional markets also awaited a rate decision from the
Polish central bank.
Hungarian assets led the decline. The forint <EURHUF=> --
often most the volatile currency in the region -- eased 0.4
percent against the euro by 0821 GMT, to bid at 275.34, while
the main equity index of the Budapest Stock Exchange <> fell
1.1 percent.
"The forint has rebounded from its 200-day moving average of
275.80, that's a support," one Budapest-based dealer said. "The
euro has fallen to the dollar as elections will come in Ireland
and there are concerns over the country's fiscal package."
Hungary's economy minister said the government would present
a reform package in February 2011 designed to deliver new
savings worth 600-800 billion forints ($3.02-$4.03 billion), the
economy minister said on Tuesday. []
But concerns over debt problems in the euro zone including
Ireland continued to dominate trade.
Most analysts expect Poland's central bank to keep rates on
hold at a record low of 3.5 percent later on Tuesday, but some
economists believe that it could lead a new tightening cycle in
the region. []
"A rate hike could lead to zloty firming, and that could
influence other currencies like the forint... but the extent
would be limited in the current international environment," one
dealer said.
The zloty <EURPLN=> weakened 0.25 percent against the euro
by 0821 GMT, to 3.954.
The Czech crown <EURCZK=> bucked the trend, firming 0.1
percent to 24.693.
Komercni Banka said in a note a technical analysis showed
the crown should continue to appreciate. The 24.71 support level
should stand firm and the currency should firm towards 24.35/37,
it said.
Romania's leu <EURON=> eased 0.2 percent to 4.307.
Monday's Romanian debt tender curbed fears that the
government would insist on a six-month strategy of capping
auction yields at 7 percent, and run into a funding crunch.
The average yield rose to 7.22 percent at the tender of
one-year Treasury bills. Investors now await Thursday's tender
of 3-year papers as the government needs funds to repay 1.4
billion euros worth of paper that matures this month.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.693 24.723 +0.12% +6.58%
Polish zloty <EURPLN=> 3.954 3.944 -0.25% +3.79%
Hungarian forint <EURHUF=> 275.34 274.25 -0.4% -1.81%
Croatian kuna <EURHRK=> 7.393 7.395 +0.03% -1.13%
Romanian leu <EURRON=> 4.307 4.297 -0.23% -1.62%
Serbian dinar <EURRSD=> 106.657 106.61 -0.04% -10.1%
All data taken from Reuters at 0921 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaus, writing by Sandor Peto; Editing
by John Stonestreet)
