WARSAW, May 27 (Reuters) - The Polish zloty led gains by
emerging market currencies on Thursday, after the euro rebounded
on comments that China remained committed to its diversification
of foreign exchange reserves.
The euro -- region's main reference currency -- surged on
Thursday after comments from a Chinese official calmed some
concerns that the country may be distancing itself from euro
zone debt holdings. []
The Czech crown underperformed the region's currencies
because analysts believe the results of the weekend
parliamentary polls is uncertain and could lead to weeks or even
months of political wrangling.
But emerging Europe's most liquid currency, the zloty
<EURPLN=>, continued its gains that started on Wednesday,
regaining some of the almost 7 percent it lost against the euro
since the beginning of May on worries over euro zone's fiscal
crisis.
"Yesterday's zloty gains may continue today but (we need to
bear in mind) the global sentiment is key," BPH bank analysts
wrote in a note to clients.
Some analysts also said the recent comments from the finance
ministry and the central bank about their possible moves on the
forex market is likely to limit possible zloty's falls to around
4.17 against the euro.
On Wednesday two Polish central bankers and a deputy finance
minister sought to quash rumours on Wednesday that the country
was moving towards a managed float of its zloty currency, saying
the currency remained free-floating. []
In April the central bank intervened for the first time in a
decade, to counter zloty strength and in May traders said that
the finance ministry had sold euros on the market to boost the
zloty.
The crown <EURCZK=> was 0.2 percent weaker against the euro
by 0742 GMT. Other currencies rose, with Hungary's forint
<EURHUF=> and Romania's leu <EURRON=> each up 0.3 percent
against the common currency.
Hungary's stats office data showed three-month rolling
unemployment rate was 11.8 percent, its highest rates since the
first quarter of 1993. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25,577 25,518 -0,23% +2,9%
Polish zloty <EURPLN=> 4,093 4,105 +0,29% +0,27%
Hungarian forint <EURHUF=> 276,62 277,3 +0,25% -2,27%
Croatian kuna <EURHRK=> 7,265 7,27 +0,07% +0,61%
Romanian leu <EURRON=> 4,153 4,165 +0,29% +2,03%
Serbian dinar <EURRSD=> 102,91 102,91 0% -6,83%
All data taken from Reuters at 0942 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets: All
emerging market news []
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(Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; Editing by Toby Chopra)
