(Adds details, fixed-income)
PRAGUE, Aug 18 (Reuters) - Emerging European currencies
edged slightly higher against the euro on Monday, with dealers
saying there was room for more gains after a stronger dollar
dragged the region lower last week.
The Czech crown <EURCZK=> inched up 0.37 percent to 24.48
per euro by 0841 GMT, unaffected by a central banker's comments
on Monday about the need to discuss a further rate cut.
The Hungarian forint <EURHUF=> rose to 238.2 to the euro
from Friday's close of 239.1.
"All currencies in the region arrived to (technical) lows
last week and this is a rebound," said one currency dealer in
Budapest.
Poland's zloty <EURPLN=> was flat at 3.33 to the euro ahead
of wage data due later, which dealers said may limit investors'
dovish outlook, and the Romanian leu <EURRON=> gained to 3.53 a
euro from 3.55.
Croatia's kuna was flat after reaching a record against the
euro last week on strong tourism inflows, and traders were
unsure if or when the central bank, which sees the strong
currency as taming inflation, would intervene to halt gains.
The Serbian dinar edged down 0.2 percent 76.61 against the
euro.
Polish bonds gained early with yields going down by 2 basis
points along the curve after the region strengthened during a
bank holiday on Friday, dealers said.
In Hungary and the Czech Republic, bonds were little changed
as dealers said activity remained low in the holiday season.
Czech central banker Pavel Rezabek was quoted as saying on
Monday that the bank board would discuss another interest rate
cut this year to avoid an economic slowdown.
However, dealers and analysts have increasingly pointed to
interest rates staying on hold after a surprise cut on Aug. 7,
saying that the crown had some space to correct back up.
"I think a cut isn't on the table now," said Miroslav
Tutter, trader with Komercni Banka in Prague. "There is space
for a stronger crown."
The Czech economy posted lower than expected growth in the
second quarter, and, like in other regional countries, the
outlook looks gloomy due to a slowdown in the euro zone.
*************************MARKET SNAPSHOT************************
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.48 24.57 +0.37% +7.61%
Polish zloty <EURPLN=> 3.33 3.33 0% +7.51%
Hungarian forint <EURHUF=> 238.2 239.07 +0.36% +5.79%
Croatian kuna <EURHRK=> 7.18 7.18 0% +2.00%
Romanian leu <EURRON=> 3.53 3.55 +0.56% +1.4%
Serbian dinar <EURRSD=> 76.71 76.58 -0.17% +2.6%
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -4 basis points to -2bps over bmk*
5-yr T-bond CZ5YT=RR +1 basis points to +8bps over bmk*
10-yr T-bond CZ10YT=RR 0 basis points to +36bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +4 basis points to +237bps over bmk*
5-yr T-bond PL5YT=RR +5 basis points to +218bps over bmk*
10-yr T-bond PL10YT=RR -2 basis points to +197bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR 0 basis points to +455bps over bmk*
5-yr T-bond HU5YT=RR +3 basis points to +432bps over bmk*
10-yr T-bond HU10YT=RR 0 basis points to -414bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0941 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet)
