* Currencies ease despite mostly good GDP data from region
* Zloty seen appreciating vs euro in medium-term
WARSAW, Nov 12 (Reuters) - Emerging Europe's currencies
weakened on Friday, with the Polish zloty leading losses after
the euro fell sharply against the dollar, and strong GDP data
from across the region failed to provide support.
The Polish zloty <EURPLN=> had strengthened to below a key
level of 3.89 to the euro on Wednesday and dealers attributed
its gains to strong foreign investor interest. Thursday was a
national holiday in Poland and markets were closed.
"Despite natural flows linked to privatisation, it seems
like the market was over-optimistic when it comes to the zloty,
and those who got PLN are trying now to get rid of it," said one
Warsaw-based dealer.
By 0820 GMT the zloty was 0.23 percent weaker against the
euro, off multi-month highs reached before Thursday's holiday.
A weakening in the zloty to around 3.98 to the euro cannot
be ruled out in the short term, but over the medium to longer
term it should appreciate, the dealer said, echoing comments by
Polish Finance Minister Jacek Rostowski published on Friday.
Rostowski told the daily Dziennik Gazeta Prawna he saw no
reason for the zloty to "weaken dramatically" and that it would
strengthen in the medium-term. []
The zloty <EURPLN=> has gained some 4.0 percent since the
start of the year to around 3.93 to the euro, but is still far
from levels last seen before the global financial crisis.
Analyst polled by Reuters expect the Polish unit <EURPLN=>
to appreciate in the next 12 months to 3.80 to the euro, leading
the region's gains.
Other currencies were also weaker on Friday, with Hungary's
forint <EURHUF=> and the Czech crown <ERUCZK=> each falling some
0.2 percent to the euro. Romania's leu <EURRON=> fell 0.1
percent to the common currency.
Data across the region showed the Czech economy likely
expanded by 1.1 percent on a quarterly basis in the third
quarter, well above analysts' forecasts, while Hungary's economy
grew by 1.6 percent year-on-year, also beating market
expectations. [] []
By contrast, data in Romania showed the country's economy
contracted by 2.5 percent on an annual basis, but dealers said
readings had limited impact on currencies as investors were
mainly focused on trimming their risk. []
Poland does not publish GDP data on Friday but Rostowski
said he expected growth in the European Union's largest
ex-communist economy to top 3.4 percent this year and 3.7
percent in 2011.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.638 24.59 -0.19% +6.82%
Polish zloty <EURPLN=> 3.944 3.935 -0.23% +4.06%
Hungarian forint <EURHUF=> 277.33 276.91 -0.15% -2.52%
Croatian kuna <EURHRK=> 7.373 7.371 -0.03% -0.87%
Romanian leu <EURRON=> 4.288 4.285 -0.07% -1.18%
All data taken from Reuters at 0920 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux, Writing by Dagmara
Leszkowicz; Editing by Giles Elgood)
