WARSAW, March 11 (Reuters) - Hungary's forint led emerging
European currencies higher on Wednesday, helping the Czech crown
erase this year's losses despite worse than expected GDP data.
Romania's leu was slightly higher but dealers said they were
awaiting more details on a potential IMF-led bailout package a
day after that country's government asked for international aid
to avoid a financing crisis.
Dealers said they were wary that Hungarian policymakers were
intervening to prop up the battered forint after central bank
Governor Andras Simor indicated on Tuesday the bank may have
intervened or shifted goverment EU funds through the market.
On Tuesday, the forint leapt more than 2 percent, pulling
the Polish zloty and the Czech crown higher. The crown briefly
clawed back its losses this year to break even at 26.69 per euro
before sliding back slightly weaker.
"There is a bit of speculation that the Hungarians are
intervening but I don't think that is the case. People are
talking about it ... but the locals don't seem to think so," a
London-based dealer said.
"I think really the market is just long euro, and getting
stopped out. We've had two days in a row of things not getting
worse on the stocks front."
At 0855 GMT, Hungary's forint <EURHUF> was 1.25 percent up
versus the euro while the Polish zloty <EURPLN=> gained 1.2
percent. The crown <EURCZK=> was 1.1 percent and Romania's leu
<EURRON=> firmed slightly.
Czech and Hungarian growth data for the fourth quarter was
worse than preliminary estimates.
Czech growth was revised down to 0.7 percent on an annual
basis, while Hungary contracted by 2.3 percent, although dealers
said it was unlikely to hit the market.
"It was slightly expected because the first forecast was
based without fresh figures from exports, industrial output or
retail sales," said David Marek, chief economist at Patria
Finance.
In Poland, a deputy finance minister said the country should
join the pre-euro ERM-2 exchange rate mechanism once the zloty
becomes less volatile and politicians reach an agreement on euro
zone entry. []
Dealers said the zloty was likely to follow global markets
for the time being. It has closely tracked stock markets in
recent weeks, benefiting when markets exhibit increased risk
appetite and sliding back when the opposite is true.
"As long as the zloty will not exceed the level of 4.63 to
the euro for some time it is difficult to say about any trend
reversal," said a Warsaw-based dealer.
It was last trading at 4.616.
In Romania dealers said the market was awaiting more details
about a potential IMF program. The country released inflation
data showing annual inflation rose to 6.9 percent last month.
"In these times, inflation is the smallest problem. Now
everybody is looking at external funding (needs) and economic
activity," a dealer said.
Dealers have said the leu, which has been relatively stable
compared to its peers over the past weeks, could be moved
near-term only be the announcement of the amount Romania plans
to get from the EU, IMF and other financial institutions.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 26.815 27.098 +1.06% -0.23%
Polish zloty <EURPLN=> 4.616 4.671 +1.19% -10.85%
Hungarian forint <EURHUF=> 301.00 304.76 +1.25% -12.44%
Croatian kuna <EURHRK=> 7.426 7.438 +0.16% -0.82%
Romanian leu <EURRON=> 4.281 4.284 +0.07% -6.23%
Serbian dinar <EURRSD=> 94.378 94.25 -0.14% -5.19%
All data taken from Reuters at 0957 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 Mike Peacock)
