* Zloty leads gains on IMF credit line
* Czech industrial data worsens
* CEE politics still eyed
(Recasts with zloty, updates prices)
By Jason Hovet
PRAGUE, April 14 (Reuters) - Poland's zloty jumped more than
2 percent on Tuesday when the country moved to secure a $20.5
billion flexible credit line from the IMF, leading gains for
emerging European currencies.
A global equity rebound and G20 pledges for more resources
for emerging markets earlier this month has lifted sentiment for
riskier assets in recent weeks, although analysts and dealers
remained cautious on emerging Europe's market recovery.
But markets have been more bullish on the zloty after heavy
losses pushed it near all-time lows in February and as it pushes
for 2012 adoption of the euro, and it has been the region's top
performer in April with an 10.8 percent rise.
Poland followed Mexico on Tuesday in requesting the new
International Monetary Fund line, and IMF chief Dominique
Strauss-Kahn said he expected a quick deal. []
The zloty added 2.4 percent from Friday's domestic close to
bid at 4.268 per euro after trading steady much of the day.
"I think (the credit line) is positive for the currency,"
said Gyula Toth, EMEA strategist at UniCredit in Vienna.
"This flexible credit line is for the good countries, and
Poland is considered to be a good country... I don't think this
is a sign the country is in trouble."
Poland's more closed economy has slowed sharply in the
global downturn but has fared better than regional neighbours,
and Toth said currencies in Hungary and Romania, which have
higher external financing needs, could stay under pressure.
Analysts have also said the Czech Republic is stronger
fundamentally but still vulnerable to global demand woes, and
Czech industrial output sank for the fifth straight month in
February, data showed on Tuesday. []
The crown <EURCZK=> lost 0.4 percent to bid at 26.545 to the
euro by 1431 GMT, but has gained almost 4 percent so far this
month and remains the region's only gaining currency in 2009.
In Hungary, the forint <EURHUF=> was up 0.8 percent at 288.5
per euro in thin trade after lawmakers endorsed economy minister
Gordon Bajnai to replace outgoing Prime Minister Ferenc
Gyurcsany. []
Bajnai named Peter Oszko as his choice for finance minister
on Tuesday, charging him with keeping the budget's balance and
creating a more favourable tax environment. []
In Romania, where markets were open on Monday, the leu
<EURRON=> was down 0.7 percent from Friday but near four-month
highs hit after seeking external aid last month, becoming the
third European Union member to do so after Hungary and Latvia.
"Markets have found some traction... so in the short-term it
still looks quite good," said a central European currency dealer
based in Stockholm. "But the Czech data was still not great
(today) and we still see some bad data coming up."
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 26.545 26.448 -0.37% +0.78%
Polish zloty <EURPLN=> 4.268 4.372 +2.44% -3.58%
Hungarian forint <EURHUF=> 288.5 290.83 +0.81% -8.65%
Croatian kuna <EURHRK=> 7.375 7.394 +0.26% -0.14%
Romanian leu <EURRON=> 4.154 4.127 -0.65% -3.36%
Serbian dinar <EURRSD=> 93.99 94.04 +0.05% -4.8%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +4 basis points to 187bps over bmk*
4-yr T-bond CZ4YT=RR -10 basis points to +218bps over bmk*
8-yr T-bond CZ8YT=RR -13 basis points to +292bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +38 basis points to +924bps over bmk*
5-yr T-bond HU5YT=RR +54 basis points to +867bps over bmk*
10-yr T-bond HU10YT=RR +53 basis points to +745bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1635 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Jason Neely and Andy Bruce)
