* Forint bolstered by mood in emerging markets - dealers * Relief at Orban's no comment on currency * Shares in OTP bank fall, then rebound By Sandor Peto BUDAPEST, April 8 (Reuters) - Hungary's forint lifted to 9-week highs against the euro on Tuesday, bolstered by rises in other emerging markets and relief the prime minister had said nothing to add to concerns he wanted a weaker currency in his first comments since his re-election. Prime Minister Viktor Orban told Monday's news conference the government would retain its heavy taxes on banks which helped Hungary stabilize its budget but critics said hindered lending and economic recovery. But that statement was expected and Hungarian shares recovered after an initial weak opening that was weighed down by an overnight fall is U.S. equities. Stocks in OTPOTPB.BU , Hungary's biggest commercial bank, initially fell by nearly one percent, but were back at 4,360 forints at 0832 GMT, firmer by 0.2 percent on the day. The main index.BUX was flat. Bucharest shares firmed after Romania's finance minister promised tax cuts.ID:nL3N0MZ1QJ The overall sentiment in the region's markets was positive, indicated by a 0.8 percent surge of the forintEURHUF= to 9-week highs against the euro, dealers said. It was bid at 304.5 at 0834 GMT. Poland's zlotyEURPLN= and Romania's leuEURRON= firmed 0.2 percent. The Orban government and the central bank had looked tolerant to forint weakness in the past months. But Orban declined to comment on the currency at his news conference, saying that forint policy was in the realm of the central bank. The forint has been Central Europe's most volatile currency as Hungary has the region's highest debt at about 80 percent of output. Dealers said it outperformed all of the region's currencies on Tuesday tracking a rise of the Turkish lira. Orban's key task will be cutting unemployment and reversing a rise in social discontent, indicated by a strong showing by the far right Jobbik party at the elections. Data released on Tuesday showed an 8.1 percent annual rise in industrial output, more than analysts' 6.1 percent consensus forecast.ID:nB3N0CV02H "The forint firming was caused by the Turkish lira's rise and the sentiment in emerging markets rather than any extra news," one Budapest-based currency dealer said. Polish dealers said a possible escalation of neighbouring Ukraine's conflict with Russia, which weighed on the region's assets in February and March, remained a risk to the zloty. CEE MARKETS SNAPSHOT AT 1034 CET ************************** CURRENCIES ************************ Latest Previous Daily Change bid close change in 2014 Czech crownEURCZK= 27.397 27.394 -0.01% -0.24% Hungarian forintEURHUF= 304.500 306.810 +0.76% -2.47% Polish zlotyEURPLN= 4.164 4.174 +0.24% -0.34% Romanian leuEURRON= 4.456 4.463 +0.17% +0.10% Croatian kunaEURHRK= 7.636 7.633 -0.04% -0.24% Serbian dinarEURRSD= 115.390 115.300 -0.08% -0.77% Note: daily change calculated from previous close at 1600 GMT **************************** STOCKS ************************** Latest Previous Daily Change close change in 2014 Prague.PX 1004.07 1013.31 -0.91% +1.74% Budapest.BUX 18094.49 18109.58 -0.08% -1.31% Warsaw.WIG20 2456.74 2453.35 +0.14% +2.18% Bucharest.BETI 6478.44 6461.88 +0.26% +0.01% ***************************** BONDS ************************** Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread 2-yearCZ2YT=RR 0.364 -0.074 +19bps -8bps 5-yearCZ5YT=RR 1.076 +0.007 +46bps 0bps 10-yearCZ10YT=RR 2.120 -0.001 +58bps 0bps ******************* FORWARD RATE AGREEMENTS ****************** 3x6 6x9 9x12 3M interbank Czech RepCZKFRA PRIBOR= 0.390 0.470 0.390 0.37 HungaryHUFFRA BUBOR= 2.750 2.920 3.170 2.66 PolandPLNFRA WIBOR= 2.740 2.740 2.820 2.72 Note: FRA quotes are for ask prices ************************************************************** (Reporting by Reuters bureaus) ((sandor.peto@thomsonreuters.com)(+36 1 327 4744)(Reuters Messaging: sandor.peto.thomsonreuters.com@reuters.net))
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