(Repeats story published late on Thursday)
BUDAPEST, Sept 11 (Reuters) - Central European currencies
fell late on Thursday after renewed concerns over global growth
battered emerging market assets and sent the U.S. dollar to a
one-year high versus the euro.
Hungary's forint <EURHUF=>, the biggest loser on the day,
shed all of its early gains to ease 1.3 percent versus the euro.
Inflation data showed earlier on Thursday that Hungary's
August headline inflation slowed more than expected, to an
annual 6.5 percent, but analysts said the central bank will not
be in a hurry to cut interest rates, due to political risks.
"Global sentiment again turned against the forint despite
better-than-expected inflation data. Asian and U.S. stocks are
falling and emerging market currencies in general are taking a
beating," a Budapest-based currency dealer said.
The Polish zloty <EURPLN=> surged on Wednesday, boosting
other central European currencies, after the prime minister said
the region's biggest economy would aim to adopt the euro in
2011, earlier than markets had expected.
The Polish unit retreated on Thursday, in line with the
region.
The Czech crown <EURCZK=> also weakened in thin trade,
sticking to tight ranges, although dealers said it could weaken
in coming days back near the 25.00 per euro level, where it has
found strong resistance in recent months.
The crown rallied on Wednesday on the back of optimism
around the zloty, but dealers said the benefit from that has
passed.
"That story is finished," one dealer said, adding the
euro/dollar will again become the main driver.
Czech bonds strengthened, with yields slipping as a slowing
economy raises the possibility of another interest rate cut at
the end of the year.
"Yields are still going down on interest rate cut
expectations," a fixed income trader said.
Romania's leu <EURRON=> also eased, falling 0.8 percent
versus the euro, while the Croatian kuna <EURHRK=> and the
Serbian dinar <EURRSD=> were broadly unchanged.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.634 24.532 -0.42% +7.03%
Polish zloty <EURPLN=> 3.421 3.401 -0.59% +4.99%
Hungarian forint <EURHUF=> 241.940 238.900 -1.27% +4.31%
Croatian kuna <EURHRK=> 7.118 7.123 +0.07% +2.85%
Romanian leu <EURRON=> 3.619 3.590 -0.81% -1.08%
Serbian dinar <EURRSD=> 76.420 76.391 -0.04% +2.97%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -1 basis points to 12bps over bmk*
5-yr T-bond CZ5YT=RR -6 basis points to +16bps over bmk*
10-yr T-bond CZ9YT=RR -2 basis points to +40bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +16 basis points to +509bps over bmk*
5-yr T-bond HU5YT=RR +15 basis points to +480bps over bmk*
10-yr T-bond HU10YT=RR +14 basis points to +399bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1554 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Gergely Szakacs;
Editing by Victoria Main)
