CEE MARKETS-Currencies ease as dollar wobbles overshadow robust PMIs

* Czech, Hungarian, Polish PMIs pick up from already strong levels

* Currencies ease on dollar jitters, Fed and ECB uncertainty

* Polish central bankers eyed after GDP, CPI, PMI data -dealer

BUDAPEST, Dec 1 (Reuters) - Central European currencies eased on Friday as the dollar's wobbles fuelled uncertainty, overshadowing a batch of powerful manufacturing indices released in the region. The forint weakened by 0.3 percent against the euro by 0941 GMT, the zloty 0.2 percent, while the Czech crown shed less than 0.1 percent. Thursday and Friday's economic data should have strengthened the units according to the textbook, underpinning that growth is vigorous in the region, fuelled by rising wages, and inflation is picking up. Poland surprised on Thursday reporting a jump in annual inflation to a 5-year-high of 2.5 percent. Robust activity was underpinned by November Purchasing Managers' Index figures from Budapest, Prague and Warsaw, while Czech annual third-quarter gross domestic product growth was confirmed at 5 percent. One Budapest-based dealer said the feeling of uncertainty dominated, after "end-of-month dollar flows sloshed hither and thither". "There has been a sell-off in equities markets, the Fed and the ECB will meet within the next two weeks, U.S. lawmakers hesitate over the tax laws, and in politics there is North Korea," the dealer added. The forint underperformed, approaching last-week's 7-month lows. Hungarian government bond yields dropped by about 5 basis points, with 10-year papers trading at 2.07 percent. These movements were caused by market talk that National Bank of Hungary (NBH) Deputy Governor Marton Nagy will inform investors in London about the bank's interest rate swap and mortgage note buying programmes on Friday, two dealers said. An NBH spokesman confirmed to Reuters that Nagy was meeting investors in London. The announcement of the schemes pushed medium-and long-term Hungarian yields to record lows last week, while government data show that foreigners' have withdrawn 207 billion forints ($785.61 million) from Hungarian bonds since Sept 21.

That was in line with an outflow from other regional bond markets. Foreigners also scale back their crown assets after a buying frenzy before the Czech central bank removed a cap on the currency in April, letting the currency strengthen. Their year-end position closings could limit the gains of the crown which reached 4-and-1/2-year highs against the euro at 25.4 last week, one Prague-based dealer said. The zloty, which along with the crown is the world's top performing currency this year, has danced around the key 4.2 psychological level in the past more than one week. There have been no signs that the past day's inflation and output figures could tip the balance towards the hawkish camp in the central bank, one Warsaw-based dealer said.



Latest Previo Daily Change


bid close change in


Czech crown 25.515 25.503 -0.05% 5.85% 0 5 Hungary 313.85 312.90 -0.30% -1.60% forint 00 00 Polish zloty 4.2080 4.2005 -0.18% 4.66% Romanian leu 4.6377 4.6442 +0.14 -2.21%


Croatian 7.5550 7.5555 +0.01 0.00% kuna % Serbian 119.05 119.29 +0.20 3.61% dinar 00 00 % Note: daily calculated previo close 1800 change from us at CET


Latest Previo Daily Change


close change in


Prague 1060.1 1059.2 +0.09 +15.0 8 7 % 4% Budapest 38387. 38673. -0.74% +19.9 53 73 5% Warsaw 2409.6 2408.6 +0.04 +23.7 0 9 % 0% Bucharest 7796.2 7802.6 -0.08% +10.0 1 2 4% Ljubljana 783.36 781.66 +0.22 +9.17 % % Zagreb 1869.9 1875.0 -0.27% -6.26% 0 1 Belgrade 745.96 743.93 +0.27 +3.99 % % Sofia 662.99 665.03 -0.31% +13.0


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


2-year 0.165 0.096 +086b +10bp ps s 5-year 0.818 -0.107 +115b -8bps


10-year 1.533 -0.045 +119b -1bps

ps Poland

2-year 1.6 0.007 +229b +1bps


5-year 2.68 -0.009 +301b +1bps


10-year 3.33 -0.015 +299b +2bps



interb ank

Czech Rep <PR 1.04 1.22 1.36 0


Hungary <BU 0.075 0.095 0.135 0.03


Poland <WI 1.776 1.835 1.925 1.73


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

($1 = 263.49 forints)

(Additional reporting by Jason Hovet in Prague, Bartosz Chmielewski in Warsaw; Editing by Richard Balmforth)