Emerging EU currencies seen firmer in 12 months, forint retreating

11 Oct, 2010

Central European currencies are expected to firm further in the next 12 months, led by the zloty, but the forint may retreat after a surge in recent weeks, a monthly Reuters poll of analysts showed on Wednesday.
Median forecasts in the October 4-5 poll of 30 analysts showed the zloty could firm 4.4 percent against the euro from Tuesday's close in the next 12 months - rising to 3.78 compared with a 3.82 forecast a month ago.
The leu and the Czech crown are expected to firm 1.4 and 0.9 pct, respectively, while the Hungarian forint is seen weakening by 2.4 percent. The leu's projected level at 4.22 against the euro is weaker than last month's 4.1 forecast, while the consensus for the forint weakened to 276 from 271.50.
This reflects their status as more vulnerable economies than elsewhere in the region and continuing concerns over the government's fragility in Romania, analysts said. Most analysts, however, see the zloty firming gradually in the next 12 months.

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