* Stocks open lower to weigh on currencies
* Currencies steady after sharp gains in previous session
* Markets look for more after Monday's cbank actions
WARSAW, Feb 24 (Reuters) - Central European currencies eased
slightly in early trade on Tuesday as stocks opened poorly,
giving up some of Monday's sharp gains following unprecedented
joint verbal intervention from the region's central banks.
Regional central bankers launched a joint push on Monday to
support their currencies that sank to multi-year or record-lows
in the past week, saying their sharp drop did not reflect their
economic fundamentals and was overdone. []
"I expect currencies are likely to move in a range further
after that step, although that range may be really wide," said
Jan Koprowski, dealer at BNP Paribas in Warsaw.
"The scenario will probably be the same for all the
currencies in the region, though I expect the sharpest moves
will be continued on the zloty."
By 0818 GMT, currencies were steady but well off Monday
highs and analysts and dealers looked for more action to come.
The Polish zloty <EURPLN=> was up a touch from Monday's
close at 4.64 to the euro. The Hungarian forint <EURHUF=> inched
up 0.2 percent to 295.98 per euro and the Czech crown <EURCZK=>
was down 0.3 percent.
Romania's leu <EURRON=> was steady after a negative open for
the region's stocks along with a rising dollar tripped up
currencies.
"The Dow fell yesterday, but the main influence is the
euro/dollar," one Budapest-based dealer said.
Investors turned attention to Poland's central bank that is
expected to slow policy easing on Wednesday with a 25 basis
point cut in borrowing costs. [] Hungary's central
bank left rates unchanged on Monday.
Analysts have said falling interest rates have contributed
to sharply declining currencies this year. And many dealers and
analysts said the recent verbal intervention has to be backed by
any action in order to prevent currencies from further falls.
"We believe the latest synchronised comments are a welcome
sign of increasing policy coordination in responding to the
spillovers of the financial crisis," said Raffaella Tenconi of
Wood & Co.
"Verbal intervention can only have a temporary impact if not
backed by concrete policy response... In the nearer term,
however, we believe weakening economic fundamentals and
continuing uncertainty over all of the EU wide policy responses
to the crisis prevent a significant recovery in CE4 currencies."
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 28.34 28.245 -0.34% -5.6%
Polish zloty <EURPLN=> 4.641 4.646 +0.11% -11.33%
Hungarian forint <EURHUF=> 295.98 296.54 +0.19% -10.96%
Croatian kuna <EURHRK=> 7.382 7.38 -0.03% -0.23%
Romanian leu <EURRON=> 4.282 4.282 0% -6.25%
Serbian dinar <EURRSD=> 93.519 94.44 +0.98% -4.32%
All data taken from Reuters at 0919 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; Editing by Andy Bruce)
