PRAGUE, Jan 14 (Reuters) - Poland's zloty rose to one-year
high on Thursday and analysts said demand for local debt and
stocks could underpin an attack on the key 4 per euro level as
appetite for risk globally extends a regional rally.
Hungary's forint and Romania's leu have also hit multi-month
highs this week. []
Currencies have been lifted by a weaker dollar pushing
investors to buy riskier emerging market assets, while a better
economic outlook for central Europe has added to gains.
The zloty <EURPLN=> bid 0.4 percent higher at 4.041 to the
euro by 0843 GMT, but off morning highs. []
The forint <EURHUF=> led gains with a rise to 266.05 per
euro, while the leu <EURRON=> was steady.
Central European stocks tracked western peers higher, which
dealers and analysts said would give currencies further support
after record demand for a Polish 2-year bond auction on
Wednesday underpinned the zloty. []
"Yesterday's auction of Polish bonds demonstrated in an
impressive manner that Eastern Europe has once again become a
popular target for portfolio investments," Commerzbank said.
"Even if the event only confirms the development in EUR-PLN
over the past few weeks; the market considered it as
confirmation of the PLN-positive view thus leading to further
zloty strength."
The zloty is expected to outperform other currencies in
central Europe this year, backed by a stronger economic recovery
and the view that it is undervalued at 20 percent off 2008
highs. []
However, analysts expect first half gains across the region
to be muted, especially with upcoming elections in Hungary and
the Czech Republic, while some countries are undermined by
concerns over high financing needs and shakier fundamentals.
Czech industrial output fell 0.1 percent year-on-year in
November, final data showed on Thursday, contradicting a
preliminary estimate that had shown the first growth in more
than a year and highlighting the slow recovery path ahead.
The Czech crown <EURCZK=> shook off the downward-revised
data and bid 0.4 percent up with others in the region.
"I would still expect rather weak activity in months ahead,"
said Jan Vejmelek, head of economic and strategy research at
Komercni Banka.
"Real improvement will depend on the revival of global
exports, especially in Germany. I think it is a question of the
second half of this year."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 26.069 26.173 +0.4% +0.96%
Polish zloty <EURPLN=> 4.041 4.055 +0.35% +1.56%
Hungarian forint <EURHUF=> 266.05 267.15 +0.41% +1.62%
Croatian kuna <EURHRK=> 7.286 7.286 0% +0.32%
Romanian leu <EURRON=> 4.12 4.121 +0.02% +2.85%
Serbian dinar <EURRSD=> 97.02 97.25 +0.24% -1.18%
All data taken from Reuters at 0950 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; editing
by Patrick Graham)
