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CEE MARKETS-Currencies fall on U.S. politics, dovish central banks

* Volatile crown leads plunge of currencies, leu at 4-year low

* Risk aversion on U.S. politics main driver of fx, stocks fall

* Polish central bank comments gave no support to zloty

* Romania expects good bond auction demand-analysts

BUDAPEST, May 18 (Reuters) - Central European currencies fell sharply from recent highs on Thursday as growing worries over Donald Trump's U.S. presidency led investors to cut risk. Comments from Poland's central bank following its policy meeting on Wednesday meanwhile reinforced that regional currencies are unlikely to get support from tighter monetary policy anytime soon. The intensifying political crisis in the United States knocked the Polish zloty 0.8 percent lower to 4.2165 per euro, retreating behind the 4.2 big figure. The Czech crown weakened 0.85 percent to 26.708 per euro, further from a 3-1/2-year high of 26.34 hit on Tuesday. Romania's leu eased only 0.1 percent, but that was enough to bring it to a four-year low of 4.5695. "Markets are ruled by fears over Trump," Erste analysts said in a note. "The decline stems from politics, but we should not take it easy. We have seen pretty big gains in the past weeks and technical indicators also pointed to a correction (fall)." A regional retreat in inflation in April -- despite a growth surge across the region in the first quarter -- kept Polish rate-setters dovish on Wednesday. Governor Adam Glapinski said the central bank could keep interest rates at current record lows until the end of 2018 rather than raising them in the second quarter of next year as many analysts expect. Analysts in a Reuters poll this week also moved the likely date for Hungary's first rate hike to 2019 from 2018. Only the Czech central bank has signaled that it might tighten policy if the crown does not strengthen beyond 27 against the euro, its former cap, removed in early April. The crown, which is being made volatile by the huge amount of speculative positions opened before the cap exit, had firmed before Thursday's plunge, with other regional currencies since France's presidential elections removed some political risks in the European Union. Romania's economy continued to lead Europe's emerging east in the first quarter, growing 5.7 percent from a year before, but worries that a surge in wages could boost the budget deficit and inflation have made the leu underperform. A Romanian auction of three-year bonds is still expected to draw healthy demand as regional bonds remained well-bid, and there will be two large expiries in Romania in June and July, ING analysts said in a note. "We doubt there is a lot of room to the upside (in the euro/leu cross), as the market might run into some concealed (euro)offers from the central bank," they added. Risk aversion in markets continued to push back regional stock indices from multi-year highs reached in the past weeks, with Warsaw shedding 0.9 percent.

CEE SNAPS AT 1009 MARKETS HOT CET

CURRENCIES Lates Previ Daily Chang

t ous e bid close chang in e 2017 Czech 26.70 26.48 -0.85 1.12% crown 80 15 % Hungary 310.0 309.0 -0.30 -0.38 forint 000 600 % % Polish 4.216 4.184 -0.76 4.44% zloty 5 4 % Romanian 4.569 4.564 -0.12 -0.76 leu 5 1 % % Croatian 7.450 7.441 -0.11 1.41% kuna 0 8 % Serbian 123.0 123.1 +0.0 0.28% dinar 000 050 9% Note: calculate previ close 1800 daily d from ous at CET

change STOCK S Lates Previ Daily Chang

t ous e

close chang in

e 2017 Prague 1011. 1020. -0.93 +9.7 19 64 % 2% Budapest 34084 34146 -0.18 +6.5 .17 .49 % 0% Warsaw 2281. 2302. -0.88 +17. 91 21 % 15% Bucharest 8446. 8456. -0.12 +19. 09 61 % 21% Ljubljana 776.8 783.6 -0.87 +8.2 0 4 % 5% Zagreb 1855. 1865. -0.50 -6.97 80 07 % % Belgrade <.BELEX15 738.3 732.8 +0.7 +2.9 > 0 3 5% 2% Sofia 661.0 661.9 -0.13 +12. 9 7 % 73%

BONDS Yield Yield Sprea Daily d

(bid) chang vs chang e Bund e in Czech sprea Republic d 2-year <CZ2YT=RR -0.01 -0.01 +067 -2bps > 9 9 bps 5-year <CZ5YT=RR 0.017 0.021 +039 +5bp > bps s 10-year <CZ10YT=R 0.83 -0.00 +047 +2bp R> 5 bps s

Poland

2-year <PL2YT=RR 1.916 -0.04 +261 -4bps > 7 bps 5-year <PL5YT=RR 2.764 -0.00 +313 +3bp > 1 bps s 10-year <PL10YT=R 3.317 -0.01 +296 +1bp R> 6 bps s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

inter bank

Czech Rep < 0.35 0.44 0.53 0

PRIBOR=>

Hungary < 0.2 0.24 0.33 0.16

BUBOR=>

Poland < 1.753 1.774 1.81 1.73

WIBOR=>

Note: FRA are for quotes ask

prices

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(Additional reporting by Radu Marinas in Bucharest/Jason Hovet in Prague/Bartosz Chmielewski in Warsaw; Editing by Catherine Evans)