* Forint dips as worries grow over Hungary-IMF deal
* Market watching out for any Romanian moves to raise funds
* Other FX little changed, markets eyeing earnings in U.S.
By Marius Zaharia
BUCHAREST, July 16 (Reuters) - The forint dipped in early
trade on Friday as worries over Hungary's IMF deal increased,
while other central European currencies were rangebound with
markets eyeing earnings statements in the United States.
International lenders, which are in Budapest for a review of
Hungary's $25 billion loan programme, disagree with the
government on issues including a bank tax and next year's budget
deficit, according to a report. []
A business website also reported earlier this week that the
International Monetary Fund and the European Union asked for a
clear commitment to bring the budget deficit below 3 percent of
GDP next year. []
At 0741 GMT, the forint <EURHUF=> was down 0.4 percent on
the day against the euro. Romania's leu <EURRON=> was a touch
lower as well, the Polish zloty <EURPLN=> was flat, and the
Czech crown <EURCZK=> was 0.2 percent stronger.
"There are growing concerns about the ongoing IMF review and
negotiations for the 2011 budget," BNP Paribas said in a note,
commenting on Hungary.
"We expect the IMF/EC to find an agreement committing
fiscal authorities to achieve ... at least a stable deficit ...
which would already be an important sign of policy continuity
and which we believe would lead euro/forint lower."
Dealers were also eyeing potential new forays into the money
market by the Romanian finance ministry after it failed to sell
the planned amount at a debt auction on Thursday at its
self-imposed cut-off yield of 7 percent [].
To compensate for failed tenders, the ministry tapped the
money market earlier this week and borrowed 1.1 billion lei in
2-week deposits, which analysts said might hurt the leu.
"It is possible to see that again, but they (the ministry)
might also look for bilateral deals with some banks," one dealer
in Bucharest said.
In Hungary, data showed Hungary's gross average wages
<HUWAGE=ECI> fell by 0.9 percent in annual terms in May after a
1.1 percent rise in April, which analysts said would likely
leave the central bank unfazed. []
Hungary's central bank is expected to keep its key base rate
on hold at 5.25 percent again on Monday, according to a Reuters
poll of analysts published on Thursday. []
Investors were also eyeing Poland's June wages and
employment data due at 1200 GMT.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.366 25.407 +0.16% +3.75%
Polish zloty <EURPLN=> 4.075 4.074 -0.02% +0.71%
Hungarian forint <EURHUF=> 280.37 279.3 -0.38% -3.57%
Croatian kuna <EURHRK=> 7.224 7.215 -0.12% +1.18%
Romanian leu <EURRON=> 4.268 4.261 -0.16% -0.72%
Serbian dinar <EURRSD=> 104.78 104.44 -0.32% -8.49%
All data taken from Reuters at 1041 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Marius Zaharia;
Editing by Ruth Pitchford)
