CEE MARKETS-Crown hits three-month-low as chip crunch hits sentiment

       By Anita Komuves and Jason Hovet
    BUDAPEST/PRAGUE, Oct 22 (Reuters) - The Czech crown fell to
a three-month-low on Friday as worries over the impact of the
chip shortage on the country's key car sector outweighed
expectations of more interest rate hikes, trimming gains for the
region's top-performing currency.
    The crown edged 0.06% lower to 25.660 per euro,
touching its lowest since the end of July. The currency has
recently been supported by the central bank's rate hikes, with a
surprise 75 basis-point tightening in September.
    Prague stocks also fell, underperforming gains
elsewhere in the region.
    "Autos production, an important part of the Czech economy,
continued to suffer from the global chip shortages with the
September data showing close to a 45%Y (year-on-year) decline in
production," Morgan Stanley said in a note.
    "Skoda announced that it will suspend production in the
second half of October with chances of further suspensions until
year-end."
    The crown has led gains in central Europe this year on the
back of monetary tightening but on Friday it failed to benefit
from the prospect of further quick action by the Czech central
bank to tame price growth.
    News the Czech National Bank (CNB) would renew from January
the sale of income from its massive international reserves after
a nine-year pause in the programme also did little to help the
currency.
    "It is true that the CNB will start with sales cautiously
... so the immediate impact for the crown isn't big yet," CSOB
said.
    The Hungarian forint dipped 0.03% to 363.80 per
euro, near six-month lows hit in the previous session.
    "U.S. yields keep rising, and the weakening of the dollar
has halted, which is pressuring currencies in the entire
region," an FX-trader in Budapest said.
    The forint has weakened 1% since the central bank's 15
basis-point rate hike on Tuesday that disappointed some
investors who were betting on a faster pace of tightening in the
face of accelerating inflation.
    The zloty slid 0.02% to 4.6030 per euro, remaining
above the psychologically important 4.6 barrier against the euro
after breaking through it in the previous session.
    On Friday, Polish rate setter Rafal Sura was quoted by
state-run news agency PAP as saying he thought rates should
return to pre-pandemic levels.

                   CEE       SNAPSHO   AT
                   MARKETS   T        1146 CET
                             CURRENC
                             IES
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2021
 EURCZK  Czech     EURHUF  Hungary   0
 EURPLN  Polish    EURRON  Romanian  EURHRK  Croatian  EURRSD  Serbian   0
         Note:     calculated from              1800
         daily                                  CET
         change

                             Latest   Previous  Daily    Change
                                      close     change   in 2021
 .PX     Prague              1330.31  1341.060   -0.80%   +29.52
                                             0                 %
 .BUX    Budapest            55321.8  55121.35   +0.36%   +31.38
                                   0                           %
 .WIG20  Warsaw              2431.73   2427.35   +0.18%   +22.57
                                                               %
 .BETI   Buchares            12808.7  12751.15   +0.45%   +30.63
         t                         4                           %
 .SBITO  Ljubljan  %
 .CRBEX  Zagreb              2050.85   2046.49   +0.21%   +17.91
                                                               %
 .BELEX  Belgrade  .SOFIX  Sofia                574.59    576.10   -0.26%   +28.39
                                                               %

                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
         Czech                                           spread
         Republic
 CZ2YT=    2-year  s
 CZ5YT=    5-year  s
 CZ10YT            s
         Poland
 PL2YT=    2-year  s
 PL5YT=    5-year  s
 PL10YT            s
                   FORWARD
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
         Czech                  3.27      3.52     3.64     2.10
         Rep       Hungary                2.66      3.05     3.30     2.00

         Poland                 1.63      2.08     2.43     0.70

         Note:     are for ask
         FRA       prices
         quotes
         **********************************************
         ****************


 (Additonal reporting by Jason Hovet in Prague and Alan Charlish
in Warsaw
Editing by Mark Potter)



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