* Eur/dlr stop losses hit CEE currencies
* Stocks decline, led by Budapest
* Cheuvreux recommends cutting Hungary exposure
By Jason Hovet
PRAGUE, Nov 26 (Reuters) - The Polish zloty and Czech crown
fell to their lowest levels since August on Friday, tracking
the euro - emerging Europe's reference currency - as worries
grew that more euro zone periphery states would need a bailout.
The Hungarian forint led losses with a half percent drop and
the Budapest stock exchange <> lost almost 2 percent to hit
a nearly five-month low as government-planned pension changes
added to local concerns.
The euro dropped to a two-month low against the dollar,
putting pressure on currencies in the European Union's emerging
east and knocking out technical levels in early, illiquid trade.
The CEE region often tracks the euro/dollar pair.
The zloty fell past the 4.0 per euro level for the first
time this month and hit its lowest since Aug. 31. The crown fell
to a similar low.
By 0839 GMT, the zloty <EURPLN=> bid down 0.4 percent at
3.997 to the euro, off a low of 4.0175. The crown <EURCZK=> was
down 0.1 percent 24.734 after falling to as low as 24.825. The
forint <EURHUF=> lost 0.5 percent to 278.57.
The Romanian leu <EURRON=> was on the weak side of 4.30 per
euro, down 0.1 percent from Thursday's close.
"Things were moving fast, there were some stop losses going
through," a Prague dealer, who declined to be named, said.
Concerns are growing that other highly indebted euro
periphery states such as Portugal or even Spain may need
bailouts after first Greece and then Ireland sought emergency
funds.
In central Europe, Hungarian and, to some extent, Romanian
markets have been regarded as most vulnerable to risk aversion
associated with the euro zone debt crisis.
Hungarian assets fell across the board on Thursday on
government plans to push private pension fund holders back into
the state pension scheme. Government moves to shore up the
budget have unnerved some investors. []
Cheuvreux recommend cutting exposure to Hungary on Friday.
"Given the complete unpredictability of the government's
decision-making process, we have decided to recommend moving out
of Hungarian assets, with the additional risk of ratings
downgrades bearing negatively ahead in our view," it said in a
regular morning note.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.734 24.718 -0.06% +6.4%
Polish zloty <EURPLN=> 3.997 3.98 -0.43% +2.68%
Hungarian forint <EURHUF=> 278.57 277.27 -0.47% -2.95%
Croatian kuna <EURHRK=> 7.422 7.421 -0.01% -1.52%
Romanian leu <EURRON=> 4.304 4.299 -0.12% -1.55%
Serbian dinar <EURRSD=> 107.00 107.03 +0.03% -10.39%
All data taken from Reuters at 0941 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 John Stonestreet)
