BUDAPEST, Jan 13 (Reuters) - Emerging European currencies
opened a shade weaker on Wednesday, then rebounded sharply on
one major investor selling euros, even as news out of China
moderated global risk appetite, dealers said.
"It was a single deal, one foreign player sold a bigger
amount and that made (the forint) jump," a currency dealer said.
Risk appetite remained weak, however, dealers and analysts
added, creating downside risk for regional assets.
Currency markets across the time zone were hit after China's
central bank raised bank reserve requirements, Danske Bank said
in a morning note. "The global liquidity boom that has been
providing a good environment for EMEA markets is a bit closer to
ending," it said.
"Furthermore, concerns over the situation in Greece is
hitting sentiment in EMEA markets... we could see a rise in risk
aversion," it added, referring to Greece's debt problems.
[]
The Hungarian forint <EURHUF=> led all gains, adding 0.5
percent by 0904 GMT, followed by the Polish zloty <EURPLN=> at
0.3 percent. The Romanian leu <EURRON=> and the Czech crown
<EURCZK=> gained around 0.1 percent.
The leu was seen potentially outperforming even after
hitting 10-month highs earlier in the week.
"Last year... not a few said the (EUR/RON) would hit 4.7 or
4.9 so investors have amassed hard currency reserves to sell (at
that point)," Adrian Vasilescu, advisor to the central bank
governor, told daily paper Evenimentul Zilei.
"But they were all wrong."
Markets were eyeing a likely parliament decision on Thursday
to approve an austerity 2010 budget, a key condition to unlock a
stalled 20 billion euro international aid deal.
Romania's annual inflation was flat at 4.7 percent in
December, slightly lower than forecast [].
In Poland, the finance ministry holds a bond tender, where
it is expected to offer 3.5-5.5 billion zlotys in 2-year bonds.
The Czech Finance Ministry will also offer 7 billion crowns
of the 10-year benchmark treasury bond on Wednesday <CZ1002471=>
in the first auction of the year.
"The bond auction (will) possibly be well subscribed as the
market seems to be short (of) bonds, but no major positive
surprise (is) expected," Komercni Banka interest rate dealer
Dalimil Vyskovsky wrote in a morning note.
Czech November retail sales came out below expectations,
leading to a temporary dip in the crown [].
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 26.149 26.172 +0.09% +0.65%
Polish zloty <EURPLN=> 4.061 4.071 +0.25% +1.06%
Hungarian forint <EURHUF=> 266.3 267.55 +0.47% +1.52%
Croatian kuna <EURHRK=> 7.278 7.272 -0.08% +0.43%
Romanian leu <EURRON=> 4.122 4.124 +0.05% +2.8%
Serbian dinar <EURRSD=> 97.16 97.38 +0.23% -1.32%
All data taken from Reuters at 1004 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaux, writing by Marton Dunai;
Editing by Ruth Pitchford)
