Central European emerging currencies recovered from lows on Friday, mirroring the euro's brief recovery, with one Budapest trader saying panic had subsided over the prospects of Greece being forced to leave the euro. The Czech crown, which fell to a fourth-month low this week, recovered the most ground in what one dealer attributed to euro "sell" orders from two big London names. By 1358 GMT the crown was bid up 0.6 percent up at 25.3 to the euro.
Czech bonds were steady, supported by expectations of a rate cut as soon as next month after the economy slid deeper in recession in the first quarter. Hungarian bond yields retreated by about 5 basis points from early levels along the curve with Budapest stocks bouncing back to lead regional market gains with 1.4 percent. Warsaw and Prague were 0.7 and 0.1 percent up respectively while Romania's fell 1.1 percent.
Hungary's forint was off morning lows, and traded flat on the day, close to the 300 per euro level which it has tested several times since January but failed to break. It briefly hit 299.7 per euro earlier in the session. Elsewhere, the Polish zloty rose 0.5 percent to 4.333. It has found some relief from expectations the central bank could intervene. Romania's leu was flat on the day at 4.44 per euro, close to an all time low hit earlier this week. In Serbia, the dinar continued to slide a day after the central bank sold 50 million euros to stem declines, with investors cautious before a presidential runoff on May 20.
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