(Updates prices, adds details, fixed income)
By Marius Zaharia
BUCHAREST, Dec 30 (Reuters) - Most central European
currencies firmed on Tuesday, with the Romanian leu leading
gains as investors booked profits after the unit's 3.5 percent
plunge in the previous session.
At 0950 GMT, the leu <EURRON=> traded at 4.02 per euro, 1.7
percent up from the previous close. On Monday, it hit a
four-year low of 4.098 on concerns over Romania's bloated
budget, trade deficits and hard currency demand from importers.
"Some investors are building long positions for the next
year, but most of the players are taking their profits after
Monday's huge move," one Bucharest-based dealer said.
The Hungarian forint <EURHUF=> was up 0.5 percent to 265.38
per euro, the Czech crown <EURCZK=> edged up 0.1 percent at
26.557 per euro, while the Polish zloty <EURPLN=> recovered from
earlier losses in thin and volatile holiday trade.
"It is likely to have low liquidity for the rest of the
week, however we expect the currency to move less sharply,"
analysts at BPH bank in Warsaw wrote in a morning note.
The zloty hit a 3-1/2-year low of 4.2062 on Monday as
companies continued to close option deals struck in the summer
when the unit was firming. On Tuesday, it firmed 0.4 percent
from closing levels, to trade at 4.115 per euro.
The Croatian kuna <EURHRK=> also edged up 0.1 percent at
7.341 per euro, recovering early losses after data showed the
economy grew 1.6 percent in the third quarter [].
Only in Serbia, where the central bank intervened again on
Monday, the battered dinar <EURRSD=> continued its downtrend,
shedding 1.2 percent to trade at 88.677 per euro.
Regional currencies have been rocked by risk aversion caused
by the global financial crisis, concerns over recession in their
main export markets and central bank interest rate cuts.
Analysts say Romania is next to join the monetary easing
trend, which is expected to continue next year as well, with a
rate cut expected in January or February.
Last week, Poland slashed its key rate by 75 basis points,
while Hungary cut rates by 50 basis points.
Fixed income markets were quiet, with virtually no trade in
Poland and with steady yields in Hungary, where investors are
waiting for an auction of 40 billion forints worth of 3-month
treasury bills.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 26.557 26.577 +0.08% -0.23%
Polish zloty <EURPLN=> 4.115 4.133 +0.44% -14.29%
Hungarian forint <EURHUF=> 265.38 266.59 +0.45% -4.96%
Croatian kuna <EURHRK=> 7.341 7.347 +0.08% -0.2%
Romanian leu <EURRON=> 4.02 4.09 +1.71% -12.28%
Serbian dinar <EURRSD=> 88.677 87.64 -1.18% -12.59%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -19 basis points to 164bps over bmk*
5-yr T-bond CZ5YT=RR +8 basis points to +160bps over bmk*
10-yr T-bond CZ9YT=RR -13 basis points to +120bps over
bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -2 basis points to +351bps over bmk*
5-yr T-bond PL5YT=RR -2 basis points to +295bps over bmk*
10-yr T-bond PL10YT=RR -5 basis points to +246bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +7 basis points to +773bps over bmk*
5-yr T-bond HU5YT=RR +28 basis points to +725bps over bmk*
10-yr T-bond HU10YT=RR 0 basis points to +536bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1150 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Marius Zaharia;
Editing by ...)
