* Zloty outperforms on rate rise expectations
* Czech Nov trade surplus slightly below f'casts
BUDAPEST, Jan 6 (Reuters) - The Polish zloty outperformed
other emerging European currencies on Thursday as investors
bought it against the Hungarian forint on news that Poland's
central bank may start a rate hike cycle soon.
The zloty <EURPLN=> had gained 0.2 percent to 3.866 to the
euro by 0816 GMT, while the forint <EURHUF=> had slipped 0.3
percent to 276.13. The Czech crown <EURCZK=> and the Romanian
leu <EURRON=> were broadly flat.
The zloty extended its gains after jumping to eight-week
highs on Wednesday, when the central bank governor told Reuters
said it was time for Polish interest rates to move gradually
higher to help strengthen the zloty. []
Governor Marek Belka was also quoted by Hungarian media on
Thursday as saying the central bank must watch inflation
expectations as economic growth accelerates. []
The zloty was mainly bought against the forint, and the
PLN/HUF pair rose to multi-month highs as a result.
"The zloty keeps gaining and the forint keeps edging lower,"
a dealer in Budapest said. "We might recoup some of those losses
later today but I don't see the EUR/HUF below 275, frankly."
Polish markets will stay closed on Thursday for a public
holiday.
Regional stock markets edged higher, with Prague <>
gaining 0.5 percent by 0859 GMT, Budapest <> adding 0.3
percent and Bucharest <> 0.4 percent.
The Czech Republic posted an 11.8 billion crown trade
surplus in November, a touch below forecasts, which analysts
said was a sign of continued economic recovery.
"The data shows economic growth did not lose steam in the
fourth quarter," said ING senior analyst Vojtech Benda. "We can
expect relatively strong growth in GDP in the fourth quarter.
The growth in exports is another strong signal for industrial
production."
Czech exports grew by 21 percent on the year, while imports
were up 24.1 percent.
Romania's finance ministry tenders 500 million lei in
three-year T-bonds later in the day. Traders expect the tender
to draw decent demand but at slightly higher yields than 7.17
percent at the previous tender.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.797 24.8 +0.01% +0.82%
Polish zloty <EURPLN=> 3.866 3.872 +0.16% +2.38%
Hungarian forint <EURHUF=> 276.13 275.42 -0.26% +0.67%
Croatian kuna <EURHRK=> 7.398 7.375 -0.31% -0.24%
Romanian leu <EURRON=> 4.265 4.263 -0.05% -0.75%
Serbian dinar <EURRSD=> 105.91 106.2 +0.27% +0.02%
All data taken from Reuters at 0916 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaux, writing by Marton Dunai; Editing
by Susan Fenton)
