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CEE MARKETS-Crown settles near 21-month high, forint eases

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    PRAGUE, Nov 8 (Reuters) - The crown settled near a 21-month
high on Monday, after a jump last week when the Czech National
Bank delivered its biggest interest rate hike in nearly a
quarter of a century, while Hungary's forint eased off its own
one-month high.
    With central European policymakers all turning to interest
rate hikes to tackle surging inflation - even as the European
central bank looks through the price growth and stands pat on
its policy - currencies have started returning to gains.
    At the same time, however, a stronger U.S. dollar amid
tapering from the Federal Reserve is cutting some risk appetite
and affecting the region, which is also grappling with a slowing
recovery due to global supply disruptions and a rising number of
COVID-19 cases that have made investors cautious.
    The crown, though, has continued to outperform peers and
received a boost last week when the central bank lifted its base
rate by 125 basis points to 2.75%, a steeper increase than
anyone expected.
    The currency had edged up 0.05% to trade at 25.22
to the euro by 1057 GMT, off a high of 25.185 hit on Friday.
    In Hungary, the forint lost 0.3% and just about
held on to the strong side of the psychological 360 per euro
    Equilor analysts said the 358 level would give some
resistance to continued gains. "If that... is broken, the forint
can test the 200-day moving average at 356.50," Equilor said.
    The Polish zloty also held steady along with
Romania's leu.
    The zloty has retreated from highs last week hit after the
Polish central bank surprised for a second straight month with a
75-basis-point rate hike. The view was tempered after central
bank Governor Adam Glapinski was quoted as saying no more rate
hikes would be necessary, although others have shown support for
more tightening.
    Markets will be tuned to a Romanian rate decision on
Tuesday, with another hike expected. 
    "We expect the Romanian central bank to raise the key rate
by 50bps to 2%, although in light of the recent surprises
delivered in Czechia and Poland, we see risks of a bolder 75bps
move," Erste Group Bank said.
    A slew of fresh inflation data is also due this week with
expectations of a continued surge in prices. Polish inflation
soared to 6.8% in October, preliminary statistics office data
showed at the end of the month.
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1157              
                            Latest   Previou  Daily    Change
                            bid      close    change   in 2021
 EURCZK  Czech     <EURCZK  25.2200  25.2320   +0.05%   +4.00%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  359.860  358.640   -0.34%   +0.79%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5970   4.5981   +0.02%   -0.82%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.9485   4.9496   +0.02%   -1.69%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5180   7.5215   +0.05%   +0.39%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.550  117.600   +0.04%   +0.02%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change STOCKS                                     
                            Latest   Previou  Daily    Change
                                     close    change   in 2021
 .PX     Prague             1389.51  1375.84   +0.99%   +35.28
                                          00                 %
 .BUX    Budapest           54832.2  55099.8   -0.49%   +30.22
                                  0        8                 %
 .WIG20  Warsaw    <.WIG20  2431.52  2439.16   -0.31%   +22.56
                   >                                         %
 .BETI   Buchares           12896.7  12874.8   +0.17%   +31.52
         t                        0        1                 %
 .SBITO  Ljubljan  <.SBITO  1205.59  1200.66   +0.41%   +33.83
 P       a         P>                                        %
 .CRBEX  Zagreb    <.CRBEX  1991.45  1997.42   -0.30%   +14.50
                   >                                         %
 .BELEX  Belgrade  <.BELEX   802.63   803.42   -0.10%   +7.22%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   601.25   603.84   -0.43%   +34.35
                   >                                         %
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
         Czech                                         spread
 CZ2YT=    2-year  <CZ2YT=   3.2530   0.0040   +398bp    -1bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   2.9250  -0.0240   +349bp    -4bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   2.7390  -0.0160   +300bp    -3bps
 =RR     10-year   =RR>                             s  
 PL2YT=    2-year  <PL2YT=   2.6910  -0.0290   +342bp    -4bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   2.8560   0.0510   +342bp    +4bps
 RR                RR>                              s  
 PL10YT            <PL10YT   2.9600   0.0500   +322bp    +3bps
 =RR     10-year   =RR>                             s  
                            3x6      6x9      9x12     3M
         Czech     <CZKFRA     3.92     3.82     3.70     3.06
         Rep       ><PRIBO                             
         Hungary   <HUFFRA     2.97     3.37     3.64     2.07
         Poland    <PLNFRA     2.65     2.96     3.06     1.56
         Note: FRA quotes are for                             
         ask prices                                    
         ****************** (Reporting by Jason Hovet in Prague and Anita Komuves in
Budapest; Editing by Krishna Chandra Eluri)
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