BUDAPEST, Dec 3 (Reuters) - Central European currencies
added to recent gains on Thursday as the dollar stayed on the
weak side of 1.50 to the euro, and the strength of the Czech
crown ignited renewed interest rate cut talk in Prague.
"It's the usual story, the dollar," a dealer in Budapest
said. "I expect further strengthening because nothing seems to
curb optimism right now."
The Romanian leu added 0.3 percent as the country confirmed
a preliminary flash estimate of a 7.1 percent contraction in the
third quarter, a result better than a consensus forecast for a 9
percent annual fall. []
"The data create a premise for economic recovery to surface
as early as the first quarter of 2010," said Ionut Popescu,
economic adviser of acting Prime Minister Emil Boc.
The Polish zloty also rose 0.3 percent versus the euro,
followed by the forint at 0.2 percent and the crown at less than
0.1 percent.
As regional currencies, including the Czech crown, remain
strong, arguments have gathered for another rate cut in Prague,
where borrowing costs are already at a record low, leading Czech
lender Komercni Banka said in a morning note.
"Short end rates are likely to stay under pressure in such
circumstances as another CNB meeting is approaching and rate cut
odds are rising once again," the note said.
Stock markets also opened higher throughout Europe, and the
Budapest bourse led gains in Eastern Europe, adding 0.9 percent
at 0832 GMT after overnight gains in Asia.
Czech bond markets will eye the Finance Ministry's first
quarter issuance calendar at 0900 GMT. The ministry has already
said borrowing in 2010 will stay at record high levels, similar
to those seen this year.
"We expect approximately 50 bln CZK to be issued in bonds,"
Komercni Banka said.
"Later in the afternoon we should know more about the plans
for the whole of 2010 (a total of 280 bln CZK financing needs
already preannounced recently)."
Candidates for the new Polish central bank Monetary Policy
Council, which is set to take office in January, said the
country should adopt the euro as soon as possible<EMUPOLL31>.
That would be realistic in 2015, one of them said.
[] []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.859 25.875 +0.06% +3.46%
Polish zloty <EURPLN=> 4.093 4.104 +0.27% +0.54%
Hungarian forint <EURHUF=> 269.3 269.8 +0.19% -2.14%
Croatian kuna <EURHRK=> 7.305 7.303 -0.03% +0.82%
Romanian leu <EURRON=> 4.223 4.235 +0.28% -4.94%
Serbian dinar <EURRSD=> 95.71 95.66 -0.05% -6.51%
All data taken from Reuters at 0928 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Marton Dunai;
editing by Patrick Graham)
((marton.dunai@reuters.com; +36 1 327 4742; Reuters
Messaging: marton.dunai.reuters.com@reuters.net))
