* Zloty underperforms, crown jumps on cross unwinds
* Forint extend post-election rally to near 4-wk high
WARSAW, April 14 (Reuters) - The Czech crown rose to a
seven-month high on Wednesday as emerging Europe's currencies
firmed, but Poland's zloty underperformed with the risk of the
central bank intervention hovering.
The Polish central bank surprised markets last Friday with
its first intervention since introducing a free float in 2000 as
it aimed to temper the surging currency's impact on exports and
the overall economy.
Some analysts have said markets may again test the bank's
policy.
"The zloty should be stronger today, looking at the level of
the euro against the dollar, but a risk of intervention halts
its appreciation," said Jakub Wiraszka, dealer at BRE bank in
Warsaw.
Polish markets have held up following the Saturday crash of
a government plane that killed President Lech Kaczynski, central
bank governor Slawomir Skrzypek and other senior officials.
But the zloty's appreciation pace -- which has already added
6 percent in value to the Polish unit against the euro this year
-- has come to a halt following the weekend events and last
week's interventions.
The crown was propelled to its highest since September this
week partly on squaring of long zloty positions against the
Czech unit.
By 0724 GMT the zloty <EURPLN=> was a touch up against the
euro, trading at 3.868 and the crown <EURCZK=> had risen 0.2
percent to 25.06 per euro, bringing its 2010 gains to 5 percent.
"There could be some profit-taking on the zloty/crown trade;
it looks like some people are squaring long positions on the
Polish zloty," a Prague dealer said.
"So the crown can test the 25 (per euro level)... and could
go slightly below."
Markets have watched cautiously the Polish central bank
following the governor's death.
The bank's acting governor Piotr Wiesiolek told daily Gazeta
Wyborcza on Wednesday the country should name the new head of
its central bank without unnecessary delays. []
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* For stories on the Polish crash and its aftermath please
double click on []
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In other trade, Romania's leu <EURRON=> and Hungary's forint
<EURHUF=> were each up 0.2 percent, with the latter at an almost
four-week high.
Central Europe's improving economic outlook has driven the
region's assets to multi-month highs this year. Hungarian
markets have also rallied this week following the sweeping
victory of centre-right Fidesz party in Sunday's first round of
parliamentary elections.
"The present sentiment points towards further forint gains,
and a commitment by the next government to reforms can further
boost confidence," analysts at Raiffeisen wrote in a note.
"However, we believe the forint's gains could be limited as
it approaches 260, as excessive forint strengthening does not
serve the interests of the economy."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.061 25.113 +0.21% +5.02%
Polish zloty <EURPLN=> 3.868 3.871 +0.08% +6.1%
Hungarian forint <EURHUF=> 262.82 263.6 +0.3% +2.87%
Croatian kuna <EURHRK=> 7.256 7.27 +0.19% +0.73%
Romanian leu <EURRON=> 4.135 4.144 +0.22% +2.48%
Serbian dinar <EURRSD=> 99.42 99.37 -0.05% -3.56%
All data taken from Reuters at 0952 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 Toby Chopra)
