* Hungary aid deal news adds boost to market
* Zloty supported by Tauron stock debut
* Romania, Polish cbanks seen on hold with rates
PRAGUE, June 30 (Reuters) - The forint rebounded from record
lows against the Swiss franc on Wednesday after an aide to
Hungary's prime minister said the country planned to a
precautionary standby agreement with the IMF for 2011.
The news also gave a lift to other central European
currencies against the region's benchmark the euro, with
Romania's leu adding 0.6 percent against the common currency and
cutting its region-leading loss for the month to 4.2 percent.
Hungarian PM aide Gyorgy Szapary told www.fn.hu that while
the Hungarian government was not planning to draw upon the new
loan, a precautionary deal could boost markets' confidence.
The country would also extend its existing financing deal
with the International Monetary Fund by two months until the end
of 2010, he said. []
Central European governments have struggled to convince
investors they can keep fiscal plans on track, with economic
recoveries still fragile in several countries and investors
nervous over a spread of the euro zone's debt troubles.
The forint bid at around 216.20 versus the franc <CHFHUF=>,
off session lows of 218, while the Hungarian currency gained 0.3
percent against the euro by 0718 GMT.
The safe-haven franc has gained broadly since the Swiss
National Bank this month backed off its pledge to intervene in
the currency market to stem its strength.
"The zloty firmed quite a bit this morning, which also
dragged the forint with it," a Budapest-based currency dealer
said. "The dollar has recovered and this news (about a new IMF
agreement) may have some positive added impact to that."
The leu <EURRON=> bid at 4.367, off a record low of 4.39 to
the euro. The Czech crown <EURCZK=>, which has held steady this
month, inched down 0.1 percent on the day.
Poland's zloty <EURPLN=> rose 0.1 percent over Tuesday's
domestic close and half a percent from overnight lows, supported
by the debut of utility Tauron on the Warsaw bourse -- Europe's
fourth largest initial public offering this year.
The utility's shares lost almost 2 percent, but Warsaw
blue-chip stocks <> gained 0.2 percent. []
Poland's central bank will decide on rates later in the day
and analysts expect the 10-strong body to leave borrowing costs
flat at an all-time low of 3.5 percent of the main rate. Markets
will mainly be eyeing comments from new Governor Marek Belka.
Romania's central bank's cycle of interest rate cuts is seen
ending on Wednesday, with rates on hold at 6.25 percent, after
its currency weakened and the government hiked the value added
tax five percentage points to 24 percent to meet IMF aid
requirements. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.782 25.749 -0.13% +2.08%
Polish zloty <EURPLN=> 4.14 4.144 +0.1% -0.87%
Hungarian forint <EURHUF=> 286.4 287.17 +0.27% -5.6%
Croatian kuna <EURHRK=> 7.194 7.195 +0.01% +1.6%
Romanian leu <EURRON=> 4.367 4.388 +0.48% -2.97%
Serbian dinar <EURRSD=> 104.49 104.38 -0.11% -8.24%
All data taken from Reuters at 0918 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; editing
by Patrick Graham)
