Most emerging European currencies stay firm

Most emerging European currencies firmed on Wednesday, boosted by strong manufacturing sector sentiment readings and news that Greece had told creditors it could accept a June 28 bailout offer if some conditions were changed. The crown led the gains, rising 0.6 percent against the euro at 0915 GMT, after a survey of Czech manufacturers showed business sentiment at a 13-month high. The headline Czech Purchasing Managers' Index (PMI) reading rose to 56.9 in June, from 55.5 a month ago, beating market expectations.
"The Czech crown exchange rate remains close to the intervention level ... and it stays near its strongest level since the intervention regime was launched," Komercni Banka said in a note. "It cannot be ruled out ... that should the (Greece) situation escalate, there could emerge pressures towards weakening of the crown." The forint gained nearly 0.5 percent against the euro at 0915 GMT, after Hungary's June PMI reading showed manufacturing sentiment at 55.1, its third-highest value since 1995.
The Romanian leu also firmed over 0.2 percent against the euro ahead of a central bank meeting later on Wednesday which is expected to see interest rates kept on hold. "Due to heightened risk perception in the context of the Greek crisis evolutions we expect that the central bank keeps its benchmark rate at 1.75 percent," Andrei Radulescu, senior economist at private bank Banca Transilvania said in a note.
A Reuters poll published at the start of June, before concerns over a Greek default mounted, had shown six out of 11 analysts expected a 25 basis points cut. The Croatian kuna and Serbian dinar also firmed, gaining around 0.1 percent at 0917 GMT. The Polish zloty remained under pressure, losing 0.04 against the euro at 0917 GMT, despite a rebound in its PMI reading to its highest level since March on sharp rises in output and new orders.
Poland's WIG20 bluechip index fell slightly in the morning, but bounced back on fresh hopes a Greek deal could be reached. Greek Prime Minister Alexis Tsipras wrote to international creditors that Greece could accept a bailout offer published on June 28 if several conditions were changed, but Germany said his letter had come too late and did not go far enough. In exchange, Athens wants a 29 billion euro loan to cover all its debt service payments due in the next two years. Other stocks in the region also rose, bouncing back strongly from the Greek slump. Budapest and Prague led the way, gaining 0.9 and 0.7 percent respectively at 0920 GMT.