(Updates zloty move, Hungarian central bank decision) PRAGUE, May 26 (Reuters) - Poland's zloty jumped more than 1% on Tuesday after breaking a key level to hit a 10-week high, while central European stocks gained 2% to 3% as European economies continued to reopen. In Hungary, the central bank kept its key interest rates unchanged, as expected, and said it would use government bond purchases sparingly as it began a week of policy meetings in the region, with Poland and Romania to follow. The forint was up 0.5% at 3w48.98 to the euro by 1420 GMT. The zloty rose to its strongest level against the euro since March 17, up 1.4% on the day at 4.443. The move has helped the Polish currency gain back more than half its losses since the end of February, after the coronavirus pandemic hit central European markets and triggered a sell-off on par with the 2008-09 global financial crisis. "It's risk-on mood in the market and some technical levels were broken," said a Warsaw-based currency dealer, referring to the psychological 4.50 per euro area. "The market was mainly long euro against the zloty ... so now I guess those guys are taking stop losses." With economies reeling after being virtually shut down to contain the virus outbreak, central banks in the region have reacted largely with easing policy to cushion the fall. Hungary's central bank, though, tightened its previously ultra-dovish policy in April to stabilise the forint. It started a quantitative easing programme in May to stimulate the economy, but has reduced how much it buys in tenders. The measures have helped steady the forint in a range of 348-355 per euro in May, well off a record low of 369.54 hit on April 1. Elsewhere, Romania's leu was steady and the Czech crown added 0.4% to 27.110. Warsaw stocks rose 3.2% and Prague and Budapest were up over 2%. A wave of business re-openings has boosted sentiment around Europe. Czech restaurants opened their indoor dining rooms on Monday for the first time since mid-March, the latest easing of restrictions in central Europe this month. CEE MARKETS SNAPSHOT AT 1620 CET CURRENCIES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech crown 27.1100 27.2225 +0.41% -6.19% EURHUF= Hungary forint 348.9800 350.8350 +0.53% -5.11% EURPLN= Polish zloty 4.4425 4.5036 +1.37% -4.19% EURRON= Romanian leu 4.8435 4.8417 -0.04% -1.14% EURHRK= Croatian kuna 7.5870 7.5825 -0.06% -1.87% EURRSD= Serbian dinar 117.5800 117.6100 +0.03% -0.01% Note: daily change calculated from 1800 CET STOCKS Latest Previous Daily Change close change in 2020 .PX Prague 900.68 882.0000 +2.12% -19.27% .BUX Budapest 36045.27 35210.60 +2.37% -21.78% .WIG20 Warsaw 1697.71 1644.74 +3.22% -21.04% .BETI Bucharest 8696.97 8688.36 +0.10% -12.83% .SBITOP Ljubljana 820.83 812.76 +0.99% -11.34% .CRBEX Zagreb 1611.69 1576.47 +2.23% -20.11% .BELEX15 Belgrade 669.21 668.97 +0.04% -16.53% .SOFIX Sofia 451.56 450.22 +0.30% -20.52% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR 2-year 0.0960 -0.0430 +074bps -8bps CZ5YT=RR 5-year 0.3950 -0.0410 +101bps -10bps CZ10YT=RR 10-year 0.7820 0.0070 +121bps -6bps Poland PL2YT=RR 2-year 0.5340 -0.0180 +117bps -6bps PL5YT=RR 5-year 0.9720 0.0020 +159bps -5bps PL10YT=RR 10-year 1.4270 0.0060 +185bps -6bps FRA 3x6 6x9 9x12 3M interbank Czech Rep 0.25 0.26 0.30 0.34 Hungary 0.85 0.84 0.80 0.95 Poland 0.40 0.35 0.35 0.68 Note: FRA quotes are for ask prices ************************************************************** (Reporting by Jason Hovet in Prague, Alan Charlish in Warsaw and Anita Komuves in Budapest; editing by Kirsten Donovan, Larry King)
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