* Fed's easy stance draws flows to high-yielding forint
* Track euro higher vs dollar after subdued US GDP
* Zloty gives up earlier gains but close to 2-mo high vs EUR
* Leu eases after failing to break resistance
(Updates after US GDP, adds bonds, comment)
By Marcin Goettig and Sam Cage
WARSAW/BUCHAREST, April 28 (Reuters) - Emerging European
currencies traded near recent highs on Thursday, tracking euro
gains against the dollar after first quarter U.S. economic
growth came in weaker than expected.
Earlier, the Federal Reserve's reiteration of its
ultra-dovish stance kept investor appetite healthy for higher
yielding assets.
Hungary's forint traded close to a one-year high against the
euro, <EURHUF=> hitting 262.70 earlier in the session, and
reached a 17-month high versus the dollar before giving up some
ground as traders booked profits.
The Polish zloty <EURPLN=> slipped slightly as importers
took advantage of a surge to a 30-month high against the dollar
to buy the U.S. currency and sparked a wider bout of profit
taking.
The Federal Reserve's policy committee decided to keep rates
on hold near zero on Wednesday and stuck to its plans to
maintain its $600 billion bond buying programme through June.
The move indicated the market would be flush with cheap
liquidity for some time to come. It lifted stocks globally, hit
U.S. debt, and drove the dollar to a 17-month low versus the
euro. []
"It's the end of the month, London is closed tomorrow --
some people thought the (forint) levels firmer than 264 are
already favourable to take profit, that's what I suppose," one
Budapest-based currency dealer said. "The same happened to the
zloty."
A fixed income dealer said investors focused on Fed Chairman
Ben Bernanke's comments in early trade which suggested continued
cheap cash supply to global markets, but followed the forint
later to weaker levels in very thin trade.
On Friday and Monday London's financial markets -- home to
many of the biggest offshore investors in emerging Europe --
are closed, which a dealer said would probably keep trade light.
LEU EDGES AWAY FROM HIGHS
Romania's leu <EURRON=> fell 0.2 percent to 4.076 per euro,
easing away from a one-year high hit in early trade after
failing to make a definitive break through resistance at about
4.07.
The leu has gained nearly 4 percent so far this year as
Romania's economy has started to gain traction after a deep
recession and fiscal reforms take effect, and some analysts
expect it could reach 3.95 per euro.
An International Monetary Fund team started a review of
Romania's new two-year aid deal on Wednesday, which will
continue through May 9 and is widely expected to note progress
in meeting fiscal deficit targets. []
"We see further appreciation for RON," one dealer said,
adding that if the leu broke through 4.07 its next resistance
would be at about 4.05 per euro, the highest level it reached in
2010.
The Czech crown <EURCZK=> was a touch lower.
The zloty shed 0.1 percent on the day, though remained close
to the two-month high hit on Wednesday after the Finance
Ministry said it would start exchanging European Union funds on
the spot market this quarter, while bond yields were little
changed.
"Without the ministry actually selling euros on the market
it will be hard for the EUR/PLN to reach levels below 3.90," ING
Bank Slaski said in a note.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.103 24.083 -0.08% +3.72%
Polish zloty <EURPLN=> 3.937 3.932 -0.13% +0.53%
Hungarian forint <EURHUF=> 264.1 264.56 +0.17% +5.26%
Croatian kuna <EURHRK=> 7.361 7.354 -0.1% +0.26%
Romanian leu <EURRON=> 4.076 4.067 -0.22% +3.85%
Serbian dinar <EURRSD=> 99.21 100.6 +1.4% +6.77%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +5 basis points to -9bps over bmk*
7-yr T-bond CZ7YT=RR +10 basis points to +49bps over bmk*
10-yr T-bond CZ9YT=RR +9 basis points to +70bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -2 basis points to +311bps over bmk*
5-yr T-bond PL5YT=RR 0 basis points to +306bps over bmk*
10-yr T-bond PL10YT=RR +1 basis points to +285bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +2 basis points to +441bps over bmk*
5-yr T-bond HU5YT=RR +7 basis points to +418bps over bmk*
10-yr T-bond HU10YT=RR +5 basis points to +375bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1558 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus; Editing by John Stonestreet)
