* Markets eye Hungary pension vote later in day
* Czech cbanker says rates to stay stable, crown lower
PRAGUE, Dec 13 (Reuters) - Eastern European currencies were
little changed on Monday as investors awaited further clarity on
future rate moves in the region, while shares rose as risk
appetite got a boost from improved economic sentiment.
Hungary's forint edged up slightly ahead of a parliamentary
vote expected to pass plans to plug the country's budget gap
with private pension fund contributions.
The Czech crown shed 0.1 percent to 25.187 per euro, losing
ground for a third straight session. Analysts said interest rate
differentials more weakening was likely in the rest of the year.
Czech rates, the lowest in the region at 0.75 percent, will
likely stay as they are for the time being, Vice-Governor
Vladimir Tomsik was quoted as saying on Monday. []
"We expect that rising global yields should weigh on the
Czech crown. Technically speaking, EUR/CZK could move further to
25.5 (per euro)," KBC analysts said on Monday.
The forint <EURHUF=> edged up 0.1 percent to 277.9 to the
euro and the Polish zloty <EURPLN=> added a similar amount to
bid at 4.022 per euro by 0941 GMT. Romania's leu <EURRON=> was
steady.
Stock markets rose along with global stocks, helped by
improving economic outlooks. Prague <> and Warsaw <>
gained up to 0.4 percent, while Budapest <> rose 0.1
percent.
Hungarian lawmakers are widely expected to roll back a 1997
pension reform on Monday, allowing the government to effectively
seize up to $14 billion in assets to reduce the budget gap while
avoiding painful austerity measures. []
Prime Minister Viktor Orban's government has taken a
different route to shore up the budget from others in Europe,
which have focused on slashing spending.
But the pension reforms along with new taxes on banks and
business, and ending a 20 billion euro safety net deal with
international lenders have spooked investors, hurt ratings and
hit asset prices. The rise in risk pushed rate setters to raise
Hungarian interest rates.
Dealers said moves from the parliamentary vote would be
limited and the next driver would be more clues on the rate
outlook, especially with the government calling for lower rates
than the current 5.5 percent.
"Last week's inflation data supported the view of further
monetary tightening, so until it becomes clear just how long
this tightening cycle may last and where it may peak I do not
think you would see much action in bonds either," a Budapest
currency dealer said.
The forint has lost 5 percent against the euro since
Fidesz's April election victory, and 3- and 5-year bond yields
have jumped more than 2 percentage points to almost 8 percent.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.187 25.162 -0.1% +4.49%
Polish zloty <EURPLN=> 4.022 4.028 +0.15% +2.04%
Hungarian forint <EURHUF=> 277.9 278.3 +0.14% -2.72%
Croatian kuna <EURHRK=> 7.402 7.388 -0.19% -1.25%
Romanian leu <EURRON=> 4.29 4.291 +0.02% -1.23%
Serbian dinar <EURRSD=> 106.48 106.86 +0.36% -9.95%
All data taken from Reuters at 1039 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 John Stonestreet)
