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CEE MARKETS-Dinar firms ahead of rating reviews

* Dinar re-tests 17-month high, S&P may upgrade Serbia's rating

* Serbian president names next PM after months, reforms seen kept

* CEE currencies regain ground after slide due to dollar buying

BUDAPEST/BELGRADE, June 16 (Reuters) - The dinar tested 17-month highs against the euro, helped by Serbia's reforms to improve revenue collection, which may yield a credit rating upgrade from Standard & Poor's on Friday, while other Central European currencies also firmed. The dinar traded at 121.94 against the euro at 0853 GMT, up 0.2 percent, testing Thursday's peak at 121.92, which was its strongest level since January last year. Two and a half months after winning presidential elections and quitting the post of prime minister, Aleksandar Vucic named his successor, Ana Brnabic, late on Thursday. Little is known about the political preferences of Brnabic but she is expected to keep to investor-friendly policies. "She will be remotely controlled (by the president) and her job will be not to deviate an inch from present policies that have been agreed with the World Bank and the IMF," Sasa Djogovic at the Belgrade-based Institute for Market Research said. Blue Bay Asset Management analyst Timothy Ash said the nomination "shows the strength of Vucic's own domestic political position - given his three straight election wins now, and also likely his own confidence in the abilities of Brnabic." Central Europe's main currencies also strengthened, regaining some of the ground that they lost after Wednesday's hawkish Federal Reserve comments triggered dollar buying. The dinar escaped Thursday's wave of selling in the region. While domestic markets are illiquid, euro supply is boosted The fundamental support to the dinar is the fiscal reforms which secured a budget surplus worth 1.2 percent of GDP in the first quarter of the year instead of a deficit agreed with the International Monetary Fund. The Serbian central bank even had to continue euro buying interventions in the market to stem the gains of the dinar. It has bought 235 million euros so far this year. Both Standard & Poor's and Fitch are due to review their credit ratings to Serbia on Friday. "S&P has had Serbia on positive outlook since the last year while strong fiscal consolidation and political commitment to deepening the reform zeal are likely to win Serbia one notch upgrade," Raiffeisen analyst Gintaras Shlizhyus said in a note. "Meanwhile, Fitch would be likely to upgrade its outlook to positive for the same reasons," he said.

CEE MARKETS SNAPSH AT 1053 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.228 26.262 +0.13 2.97% 0 5 % Hungary 307.77 308.20 +0.14 0.34% forint 00 50 % Polish zloty 4.2192 4.2336 +0.34 4.38%

%

Romanian leu 4.5815 4.5854 +0.09 -1.01%

%

Croatian kuna 7.4015 7.3995 -0.03% 2.08% Serbian dinar 121.94 122.15 +0.17 1.16% 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1000.8 996.74 +0.41 +8.59 2 % % Budapest 35727. 35534. +0.54 +11.6 61 50 % 4% Warsaw 2300.3 2295.9 +0.19 +18.0 6 9 % 9% Bucharest 8431.3 8406.2 +0.30 +19.0 4 9 % 0% Ljubljana 785.73 786.18 -0.06% +9.50

%

Zagreb 1851.4 1855.8 -0.24% -7.19% 5 4 Belgrade 715.72 718.61 -0.40% -0.23% Sofia 684.86 683.66 +0.18 +16.7 % 8%

BONDS

Yield Yield Spread Daily (bid) change vs change Bund in Czech spread

Republic

2-year 0 0.058 +061b +3bps

ps

5-year -0.035 0.004 +033b -1bps

ps

10-year 0.946 0.086 +064b +7bps

ps Poland

2-year 1.936 0.018 +255b -1bps

ps

5-year 2.6 0.033 +297b +2bps

ps

10-year 3.162 0.02 +285b +0bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.34 0.41 0.5 0

IBOR=>

Hungary <BU 0.19 0.22 0.28 0.15

BOR=>

Poland <WI 1.76 1.78 1.8 1.73

BOR=>

Note: FRA are for ask quotes prices ********************************************************* ****

(Writing by Sandor Peto; Editing by Louise Ireland)