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CEE MARKETS-Crown firms, other FX up as weak dollar stays weak

    BUCHAREST, May 24 (Reuters) - Central European currencies
edged up on Monday, with the Czech crown testing a fresh
14-month-and-a-half high against the euro, lifted by euro's
resurgence against a weak U.S. dollar.
    The dollar stood near its lowest level in three months
against the single currency, weighed by the Federal Reserve's
dovish tilt.
    The euro zone is Central Europe's main trading partner.
    By 0850 GMT, the crown and the Polish zloty firmed about
0.1% to trade at 25.4290 and 4.4880 to the euro respectively and
the Romanian leu was flat on the day at 4.9240.
Hungarian markets are closed for a national holiday on Monday.
    On Tuesday, Hungary's national bank will hold its next
rate-setting meeting, where it is seen leaving key rates steady
ahead of a June meeting when it could deliver its first base
rate hike in nearly a decade..
    "CEE FX are benefiting from U.S. dollar weakness," a
Prague-based dealer said. Rate hike expectations are also
helping.     
    The Czech central bank will return to its debate on raising
rates next month. It seems certain to start tightening policy
this year as pandemic effects subside and domestic consumption
is expected to pick up, Governor Jiri Rusnok had said.
    The Polish zloty and the forint firmed
beyind past psychological levels against the euro last week on
expectations of policy tightening across the board, fuelled by
higher-than-expected consumer price inflation readings.
    "An attempt to stay below this (4.50) (zloty) level will be
the main task for the domestic currency market in coming days.
This will continue to be supported by expectations of a quicker
monetary policy normalization than officially communicated by
the Monetary Policy Council," Bank Millennium said on a note.
    
                CEE        SNAPSHOT   AT                       
                MARKETS              1050 CET           
                           CURRENCI                            
                           ES                           
                           Latest    Previous  Daily    Change
                           bid       close     change   in 2021
 Czech crown                25.3950   25.4480   +0.21%   +3.28%
 Hungary                   347.6000  348.6000   +0.29%   +4.35%
 forint                                                 
 Polish zloty                4.4910    4.4942   +0.07%   +1.52%
 Romanian leu                4.9265    4.9267   +0.00%   -1.25%
 Croatian kuna               7.5030    7.5085   +0.07%   +0.59%
 Serbian dinar             117.5300  117.5800   +0.04%   +0.03%
 Note: daily    calculated from                1800            
 change                                        CET      
                                                               
                           Latest    Previous  Daily    Change
                                     close     change   in 2021
 Prague                     1156.85  1158.930   -0.18%   +12.63
                                            0                 %
 Budapest                  46396.87  46396.87   +0.00%   +10.19
                                                              %
 Warsaw                     2131.83   2139.06   -0.34%   +7.45%
 Bucharest                 11693.07  11679.65   +0.11%   +19.25
                                                              %
 Ljubljana                  1117.47   1112.00   +0.49%   +24.05
                                                              %
 Zagreb                     1935.87   1943.60   -0.40%   +11.30
                                                              %
 Belgrade       <.BELEX15    783.54    776.09   +0.96%   +4.67%
                >                                       
 Sofia                       534.08    534.08   +0.00%   +19.34
                                                              %
                                                               
                           Yield     Yield     Spread   Daily
                           (bid)     change    vs Bund  change
                                                        in
 Czech                                                  spread
 Republic                                               
   2-year       <CZ2YT=RR    0.5990    0.0210   +126bp    +2bps
                >                                    s  
   5-year       <CZ5YT=RR    1.5300    0.0020   +205bp    +0bps
                >                                    s  
   10-year      <CZ10YT=R    1.8160   -0.0100   +195bp    -1bps
                R>                                   s  
 Poland                                                        
   2-year       <PL2YT=RR    0.1790   -0.0110   +084bp    -1bps
                >                                    s  
   5-year       <PL5YT=RR    1.2110   -0.0130   +173bp    -1bps
                >                                    s  
   10-year      <PL10YT=R    1.8580   -0.0160   +199bp    -1bps
                R>                                   s  
                FORWARD                                        
                           3x6       6x9       9x12     3M
                                                        interba
                                                        nk
 Czech Rep              <      0.69      0.97     1.31     0.36
                PRIBOR=>                                
 Hungary                <      1.19      1.43     1.60     0.90
                BUBOR=>                                 
 Poland                 <      0.36      0.52     0.73     0.21
                WIBOR=>                                 
 Note: FRA      are for ask prices                             
 quotes                                                 
 *****************************************************         
 *********                                              
 
    

 (Reporting by Radu Marinas in Bucharest; Additional reporting
by Jason Hovet in Prague; Editing by Giles Elgood)
  
 
 
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