(Adds details, fixed income, updates prices.)
WARSAW/BUDAPEST, Nov 19 (Reuters) - Central European
currencies rebounded in late trade on Wednesday, regaining most
of the ground lost earlier, helped by a dollar retreat against
the euro.
The euro is the key reference currency in the region.
The main stock markets in the region also recovered from
earlier lows, with Warsaw's WIG <> firming 1.28 percent to
26,109 points, Prague's PX <> closing flat at 777.2 points,
while Budapest's BUX <> shed 1.19 percent to 11,525 points.
The Polish zloty <EURPLN=>, which earlier dropped one
percent, narrowed its loss to 0.24 percent and was bid at 3.826
against the euro by 1608 GMT.
The Czech crown <EURCZK=> eased less than 0.1 percent to
25.687, while the forint <EURHUF=> weakened 0.15 percent to
270.4.
The dollar's appreciation and losses by developed equity
markets weighed on sentiment, but a retreat of the dollar
against the euro <EUR=> during late trade mitigated the losses
of most Central European currencies.
"The zloty gained because the dollar, after the (weak Oct
U.S.) data from the housing market, lost against the euro. And
the zloty is now tracing the moves of the euro/dollar," said
Jakub Wiraszka a currency trader at BRE Bank in Warsaw.
Dealers said currencies in the region were likely to remain
jittery.
"The (global financial) crisis is not over, I don't think
that the forint could firm significantly, a weakening is more
likely," one Budapest-based trader said.
Romania's leu <EURRON=> also recovered and traded flat at
3.824 against the euro, while Serbia's dinar <EURRSD=>, the
currency worst hit in the region in recent weeks, bucked the
trend and was weaker by 1.33 percent at 87.538 to the euro.
Hungary's government bond prices rose slightly, mainly at
the long end of the curve, after the forint firmed, but market
turnover remained low.
Activity in the Czech bond market remained muted but it
showed signs of recovery as the Czech Republic sold a robust
9.87 billion crowns worth of 8-year floating rate
bonds.[]
"There was nice demand and a relatively high price. It can
be a good signal for the market," a local trader said.
Analysts at BPH bank warned that fresh selling on stocks
could again put pressure on currencies.
"The American indices are close to crucial support levels
from the end of October and (breaking) those levels could cause
another wave of a selloff and result in further zloty
weakening," they wrote.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 25.687 25.673 -0.05% +3.06%
Polish zloty <EURPLN=> 3.826 3.821 -0.13% -6.26%
Hungarian forint <EURHUF=> 270.4 270 -0.15% -6.94%
Croatian kuna <EURHRK=> 7.131 7.111 -0.28% +2.67%
Romanian leu <EURRON=> 3.824 3.825 +0.03% -6.81%
Serbian dinar <EURRSD=> 87.538 86.39 -1.33% -11.15%
Yield Spreads
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR 0 basis points to +410bps over bmk*
5-yr T-bond PL5YT=RR -9 basis points to +365bps over bmk*
10-yr T-bond PL10YT=RR -2 basis points to +290bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -39 basis points to +1064bps over bmk*
5-yr T-bond HU5YT=RR -50 basis points to +999bps over bmk*
10-yr T-bond HU10YT=RR +14 basis points to +605bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1708 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
For related news and prices, click on the codes in brackets:
All emerging market news []
Spot FX rates Eastern Europe spot FX <EEFX=>
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz
and Sandor Peto; Editing by Ruth Pitchford)
