RPT-FX weaker as stocks slide; forint bounces off lows

                                
 (Repeats story published late on Monday)
                                
 By Jason Hovet and Marius Zaharia
                                
 PRAGUE/BUCHAREST, Feb 2 (Reuters) - Central European
currencies mostly weakened on the back of equity losses on
Monday, while Hungary's forint jumped around 1 percent after
starting the session near a record low.
                                
 The region's economic woes were again highlighted as
manufacturing activity in Hungary and the Czech Republic tumbled
faster in January, key surveys showed on Monday, and though
Poland's pace of decline eased, analysts do not expect it to
defy the trend for long. [ID:nL2617376]
                                
 Indices in Warsaw slipped more than 3 percent and Prague
dropped almost 2 percent tracking western peers, while a weaker
euro against the dollar added to pressure on currencies.
                                
 The crown <EURCZK=> lost 0.4 percent to 28.11 per euro,
falling back to lows hit in January in earlier trade and nearing
its lowest level since July 2007. In Romania, the leu <EURRON=>
lost 0.7 percent to bid at 4.319 to the euro by 1518 GMT.
                                
 "We are experiencing a weak risk appetite backdrop as
affected by across-the-board losses in European equities," said
Martin Blum, an emerging strategist with UniCredit in Vienna.
                                
 "There was some good news in the Polish PMI... So in terms
of news flow, it was not quite as bad as action would suggest."
                                
 Currencies have been battered by worsening economic data
showing a rougher slowdown in central Europe. Authorities have
slashed growth forecasts and cut interest rates in the face of
deepening recession in the euro zone, a main export market.
                                
 The Romanian central bank's hard currency reserves fell by
around 200 million euros in January, signalling potential
central bank intervention last month. [ID:nL2167237]
                                
 The forint <EURHUF=>, the most battered currency last week,
traded 1.1 percent firmer at 295 per euro from Friday's close,
and compared with an all-time low of 299.30. The Polish zloty
<EURPLN=> was steady versus the euro, off a key level of 4.46.
                                
 The forint is off 10.7 percent so far in 2009, the zloty 7.7
percent and the leu 7 percent, while the crown is down 4.8
percent.
                                
 Hungarian Prime Minister Ferenc Gyurcsany said on Sunday he
was "very concerned" about the forint trading near levels of
around 300 to the euro. [ID:nBSB001622].
                                
 Analysts have also said levels weaker than 300 may hit many
households which took out loans in Swiss francs, euros and the
Japanese yen in past years, as their monthly repayments rise.
                                
 A key Polish central banker said interest rates could be
lowered to 3 percent this year from the current 4.25 percent.
Polish bonds were steady on the day. [ID:nL2414050]
                                
 "The longer-dated bonds suggest that potential for further
sell-off has probably run its course," BRE fixed-income dealer
Remigiusz Zalewski said. "We could expect an increase in bond
prices thanks to signalled rate cuts if we assume that all the
budget problems will be resolved."
                                
 In Hungary, yields moved slightly lower, and dealers said a
further drop was possible as there will be substantial interest
payments and expiries next week.
                                
 Romania --which has so far stayed off the regional policy
trend -- and the Czech Republic are expected to cut their
interest rates this week. The Czech finance minister said a
contraction of the economy could not be ruled out. [ID:nL2471192]
                                
 
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   28.11    28.00   -0.39%   -4.83%
Polish zloty     <EURPLN=>    4.456    4.454  -0.04%   -7.65%
Hungarian forint <EURHUF=>  294.99   298.35   +1.14%   -10.66%
Croatian kuna    <EURHRK=>    7.37     7.364  -0.08%   -0.07%
Romanian leu     <EURRON=>    4.319    4.29   -0.67%   -7.05%
Serbian dinar    <EURRSD=>   94.518   94.318  -0.21%   -5.33%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +26 basis points to  115bps over bmk*
4-yr T-bond   CZ4YT=RR   +27 basis points to  +115bps over bmk*
8-yr T-bond   CZ8YT=RR   +10 basis points to  +119bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +3 basis points to  +333bps over bmk*
5-yr T-bond   PL5YT=RR   +1 basis points to  +268bps over bmk*
10-yr T-bond PL10YT=RR    -3 basis points to  +241bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1621 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 and
Marius Zaharia, editing by Stephen Nisbet/Victoria Main)