* Strong manufacturing data supports Polish zloty
* Romanian leu weakens after cbank holds rates flat
* Czech, Hungarian PMI dip but still strong
BUCHAREST, April 1 (Reuters) - Emerging European currencies
were mixed in Friday morning trade, with strong manufacturing
data supporting the Polish zloty while the Romanian leu weakened
further after the central bank kept interest rates on hold.
The Polish zloty has been bounced around in recent sessions
by a combination of expectations of higher interest rates and
concern that external shortfall revisions may show it
increasingly burdened by a sizable "twin deficit".
Polish manufacturing PMI data for March beat expectations,
pointing to a strengthening economy and also rising price
pressures ahead of a central bank rate-setting meeting next
week. []
"As long as there is uncertainty regarding quality of
balance of payments statistics, investors are likely to remain
cautious and room for near-term zloty appreciation will be
probably smaller than previously expected," Citibank said in a
research note.
At 0755 GMT, the zloty <EURPLN=> was bid at 4.026 per euro,
0.2 percent stronger on the day.
Elsewhere in the region, March PMI data dipped slightly in
Hungary and the Czech Republic, but the levels were still high
and indicated strong industrial sectors.
The Czech crown <EURCZK=> was 0.3 percent higher on the day,
while the Hungarian forint <EURHUF=> was flat, although analysts
have said the forint was likely to find support in improving
economic fundamentals.
"On balance, we tend to prefer the forint versus the zloty
at this point also on the mere fact that fourth quarter current
account data in Hungary came in at triple the expectations
yesterday," Unicredit said in a morning note.
Hungary's government expects to post a budget surplus of 2
percent of gross domestic product this year due to the one-off
revenue impact of recent pension changes, the Economy Ministry
said on Friday, after it recorded a deficit of 4.2 percent of
GDP last year, overshooting its target. []
In Romania, the leu <EURRON=> was down 0.3 percent on the
day, extending losses recorded in the previous session after the
central bank left interest rates unchanged at 6.25 percent but
was less aggressive than expected in its accompanying remarks.
The bank cut minimum reserve requirements on FX loans to 20
percent from 25 percent to ease lending, a step which should
help Romania's fledgling economic recovery. []
"Contrary to our expectations there was no hawkish tone in
the press release," said ING's Nicolaie Alexandru-Chidesciuc.
"We see this as a first signal that inflation will be high in
Romania, even higher than what we expect currently."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.445 24.51 +0.27% +2.27%
Polish zloty <EURPLN=> 4.026 4.03 +0.1% -1.69%
Hungarian forint <EURHUF=> 265.92 265.92 0% +4.54%
Croatian kuna <EURHRK=> 7.373 7.373 0% +0.09%
Romanian leu <EURRON=> 4.141 4.121 -0.48% +2.22%
Serbian dinar <EURRSD=> 102.78 103.4 +0.6% +3.06%
All data taken from Reuters at 1015 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus; Writing by Luiza Ilie; editing
by Patrick Graham)
