PRAGUE: The zloty held on to gains after the Polish central bank held interest rates at a record low on Wednesday.
Hungarian data gave evidence about economic recovery in the region and boosted the forint.
Hungarian economy grew by 0.5 percent in annual terms in the second quarter, the first year-on-year expansion since the fourth quarter of 2011, helping the forint regain some ground it lost late in the previous session.
That Forint was 0.5 percent firmer to bid at 300.8 to the euro.
Other emerging European economies also showed renewed signs of life in the second quarter and factories across the region reported growth in output and new business in August, in the wake of an improving German economy.
Poland's central bank left its base rate at 2.50 percent on Wednesday, in line with expectations that policymakers were determined to keep borrowing costs flat till at least the end of the year on signs of recovery.
The zloty stayed 0.3 percent up at 4.258 per euro. "We believe that the first interest rate hike in Poland does not come before 2014, when inflation should climb back to the target and also domestic demand hopefully gets stronger," KBC said in a note.
Also on Wednesday, final data showed Romania's economy grew faster than a preliminary release suggested last month.
"There was no initial market reaction to the news but we believe it could offer some slight help to the leu and prove fairly neutral for the bond space as the slight growth revision could weigh a bit on rate cut expectations," said Vlad Muscalu, ING's senior economist in Bucharest.
The leu was down a touch at 4.449 per euro.
The crown rose 0.1 percent to 25.760 a day after data confirmed the Czech economy was out of a record-long recession. The data added to arguments for the central bank to hold off on intervening in currency markets to further loosen policy after it cut rates to near zero last year.
Czech yields ticked up at an auction on Wednesday and the Finance Ministry has been selling lower amounts because most of its borrowing is nearly complete this year.
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