July 7 (Reuters) - Currencies in central and Eastern Europe
have climbed to new record highs over the past week, mainly on
the back of market expectations that interest rates will rise in
the region.
Following are some details on the performance of the Polish
zloty, the Czech crown, the Hungarian forint and the Romanian
leu. (Click on [] for story).
POLAND
* The Polish zloty <EURPLN=> hit a new record of 3.3117 to
the euro on Monday, 0.13 percent up from Friday's close.
* The zloty has gained 8.2 percent to the euro since Jan. 1
and 31 percent since entering the European Union in 2004,
fuelled by strong growth in the region's largest economy and
eight interest rate hikes to 6 percent since April 2007 as the
central bank clamps down on surging price growth.
* The zloty is expected to end 2008 at 3.335 to the euro, a
Reuters poll published June 9 showed.
CZECH REPUBLIC
* The Czech crown <EURCZK=> rose 0.3 percent against the
euro on Monday to an all-time high of 23.560.
* It has seen record gains in the past month and has firmed
10.5 percent this year as investors increasingly view the
currency as a safe haven amid strong economic growth.
* The central bank has cited the strong crown as a factor in
its decision to leave interest rates steady at 3.75 percent
since February, or 50 basis points below euro zone rates.
*The crown is seen weakening to 25.15 to the euro in the
next six months, according to a June 17 Reuters poll.
HUNGARY
* The forint <EURHUF=> was 0.5 percent stronger on Monday at
232.70 to the euro, near five-and-a-half year highs. It has
strengthened 9.5 percent since the central bank abandoned a
trading band that limited gains at 240 forints per euro at the
end of February.
* Hungary's currency also benefits from interest rates that,
at 8.5 percent, are among the highest in the region and are
widely expected to rise further.
*The forint is seen pulling back to 245.00 to the euro by
end-2008, a June 20 Reuters poll showed.
ROMANIA
* Romania's leu <EURRON=> traded at 3.602 to the euro, or
0.2 percent stronger at 1031 GMT on Monday, nearing
two-and-a-half month highs.
* The leu has been battered in the past year in the global
financial crisis by investor worry over Romania's large current
account deficit, which the International Monetary Fund expects
to grow to 14.5 percent this year.
*The leu is seen strengthening to 3.55 to the euro by the
end of the year, according to a June 6 Reuters poll.
current all-time percentage percentage
level per high vs. change change
euro at euro since since
1200 GMT Jan. 1, 2008 May 1, 2004 *
PLN 3.3115 3.3115 8.26 31.02
CZK 23.545 23.545 10.55 27.65
HUF 232.70 230.15 ** 8.25 7.71
LEU 3.602 1.292 -0.44 10.88
* Date of EU entry for Poland, Czech Republic, and Hungary
** hit on Jan. 16, 2003
(Compiled by Jason Hovet; Editing by Victoria Main)
