* Crown, zloty, forint test key levels
* Risk appetite high, helping regional assets
By Marius Zaharia
BUCHAREST, July 28 (Reuters) - Central European currencies
hovered around key levels against the euro on Wednesday, holding
onto recent gains, as global stock gains distracted investors
from worries about the region's finances.
The Czech crown traded near a 3-1/2 month high and was close
to firming below 25 per euro for the first time since September
2009 -- which analysts said it would try to break soon. But
investors are wary that it trades around levels where the
central bank has intervened verbally in the past.
"In the EEMEA region we will closely watch EUR/CZK which is
still trading close to ... 25.00 where the central bank has
interfered several times in the last 12 months amid fears that
the too strong currency would hurt export performance,"
UniCredit said in a note.
"We think that the (central bank) CNB might let the CZK
appreciate below the 25.00 level this time."
The Polish zloty was testing levels below 4.0 per euro,
which it hit on Tuesday for the first time since mid-May, and
dealers said that if it holds on in that territory on Wednesday,
the unit would be poised for further gains.
Hungary's forint, an underperformer in the region since the
government suspended talks with international lenders earlier
this month, led mild morning gains, helped also by data showing
a decline in unemployment []
"The forint is gaining more than others because the extra
losses we booked last week are being corrected," one dealer in
Budapest said.
"We might go even further, to 281, and even 280 against the
euro, but we'll see some resistance there for sure. Even at
current levels there are investors who close positions."
At 0751 GMT, the forint <EURHUF=> was up 0.1 percent at
282.22 per euro, off morning highs of 281.50, which some dealers
say it is a tough resistance to break.
The zloty <EURPLN=> was also a touch up at 3.994 per euro,
while the crown <EURCZK=> traded at 25.018 per euro, flat on the
day. Romania's leu <EURRON=> was a touch weaker.
Investors were eyeing a Romanian tender to sell 400 million
euros of 1-year treasury bills on the domestic market.
The finance ministry is seeking alternative ways of
financing since it cannot raise enough cash by sticking to its
tactics of rejecting yields above 7 percent at domestic
leu-denominated paper auctions.
Dealers expect high interest in the local euro tender on
Wednesday and say the ministry may accept to pay a premium of
around 5 percent.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.018 25.025 +0.03% +5.2%
Polish zloty <EURPLN=> 3.994 3.999 +0.13% +2.75%
Hungarian forint <EURHUF=> 282.22 282.62 +0.14% -4.21%
Croatian kuna <EURHRK=> 7.245 7.245 0% +0.89%
Romanian leu <EURRON=> 4.254 4.248 -0.14% -0.39%
Serbian dinar <EURRSD=> 105.923 105.92 0% -9.48%
All data taken from Reuters at 0851 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux, writing by Marius Zaharia,
Editing by David Brough)
