The Polish zloty eased on Monday to lead central European currencies down a touch, with regional assets backing away from recent multi-week highs a day before long-delayed U.S. jobs data.
Many investors are betting that after the disruption of the U.S. political standoff over debt, the Federal Reserve will put off winding back the supply of cheap money that investors have diverted to higher-yielding emerging markets around the world.
The zloty had dropped 0.3% from Friday's closing levels to bid at 4.182 to the euro, but traded mostly steady in the morning, a touch off a one-month peak.
"The zloty is opening a bit weaker, although the main thrust of selling came on Friday, mainly from investors in Asia," said one FX dealer.
Much depends on economic data, delayed by a 16-day U.S. government shutdown. A jobs report on Tuesday will at last give clues on how soon the Fed might start to run down its monthly bond-buying.
Hungary's forint dipped less than 0.1% to 293.45 to the euro on Monday after hitting a three-month high of 293.2 on Friday while the Romanian leu fell 0.2%. Analysts expect the region will find continued support.
"The strong euro supports positive CEE sentiment," Raiffeisen said in a note. "This in unlikely to change in the near-term future as the euro strength versus the dollar is likely to remain with us."
The Czech crown, which has retreated 0.9% in the past ten days while peers in the region are a bit firmer, inched back 0.2% to 25.752 per euro. It is hanging around a 3-1/2-week low as the threat of Czech central bank intervention hangs over the market.
Policymakers have been mulling using that tool because interest rates are at near zero and inflation remains below target.
On stock markets, Warsaw gained 1.9% while other bourse were mixed.
Czech lender Komercni Banka fell 0.5% in Prague on profit taking after shares in the country's third largest bank by assets hit their highest level since January 2011 last week.
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