* Investors await Czech cbank comments after rate meeting
* Romania tender watched closely after positive IMF review
By Marius Zaharia
BUCHAREST, Aug 5 (Reuters) - The crown traded a touch lower
on Thursday as investors waited to see if Czech central bank
talks down the recently strong currency after a policy meeting
at which it is expected to keep interest rates at record lows.
Investors have favoured the crown, usually seen as a safe
haven in central Europe, due to better-than-expected economic
data from the Czech Republic and its main trading partner
Germany as well as expectations for tight fiscal policy.
But policymakers have verbally intervened to weaken the
crown in the past when it has neared 25 per euro, fearing its
strength would hit exports and endanger economic recovery.
The crown has gained 4.1 percent against the euro since the
last rate meeting on June 23, sending it to a 21-month high. It
has outpaced a 1.7 percent gain for the Polish zloty in that
time, while the forint and leu have dropped about 0.5 percent.
At 0729 GMT, the crown <EURCZK=> traded 0.3 percent weaker,
while the Romanian leu <EURRON=>, the Hungarian forint <EURHUF=>
and the zloty <EURPLN=> were 0.1-0.2 percent down.
"It will be of particular interest whether the CNB comments
on the EUR-CZK exchange rate," Commerzbank said in a note.
"Some market participants had been surprised by the CNB's
lack of reaction to the exchange rate falling below the 25.00
mark. That does not seem to be in line with (Governor Miroslav)
Singer's dovish attitude."
The Czech central bank is expected to leave rates flat at
0.75 percent. The decision will be announced at 1100 GMT and
followed by a news conference at 1230 GMT. []
Romania's central bank left interest rates unchanged at 6.25
percent on Wednesday, after the country got the green light for
the next aid tranche from international lenders. []
Some economists say the news bodes well for a recovery in
the leu, but the outlook remains uncertain as recent austerity
measures may backfire and deepen recession.
Romania's 3-year bond tender later in the day will be an
indicator of how investor sentiment has changed after the latest
IMF review. The Czech Republic and Hungary hold T-bill auctions.
Polish and Czech debt tenders on Wednesday went smoothly
[].
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.693 24.626 -0.27% +6.58%
Polish zloty <EURPLN=> 3.991 3.985 -0.15% +2.83%
Hungarian forint <EURHUF=> 281.28 280.97 -0.11% -3.89%
Croatian kuna <EURHRK=> 7.221 7.221 0% +1.22%
Romanian leu <EURRON=> 4.253 4.251 -0.05% -0.37%
Serbian dinar <EURRSD=> 105.57 105.96 +0.37% -9.18%
All data taken from Reuters at 0929 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Marius Zaharia;
Editing by Hugh Lawson)
