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CEE MARKETS-Currencies weaker despite oil pipeline flows resuming

       BUCHAREST, Aug 11 (Reuters) - Central European currencies
weakened against the euro on Thursday as support from the
resumption of Russian oil pipeline flows and bets of less
aggressive interest rate hikes by the Federal Reserve lost some
momentum.
    Russian oil pipeline flows resumed to Central Europe on
Wednesday, ending a six-day halt, after Hungarian group MOL paid
transit fees owed to Ukraine. Flows to the Czech Republic should
also resume within two days.
    The resolution of the latest disruption of Russian energy
supplies and softer-than-expected U.S. inflation, which saw
traders scale back expectations of an aggressive pace of
tightening, supported central European currencies late on
Wednesday.
    But concerns over high inflation and potential scale-backs
of interest rate tightening in the region weighed on currencies,
as did Hungarian and Polish conflicts with the European
Commission over access to EU funds.
    By 1011 GMT, the Hungarian forint was down 0.3%
against the euro at 394.8500, the Polish zloty was
down 0.2% and the Czech crown edged 0.1% lower.
    "Market rates remain at lower levels, especially in Poland,
where the National Bank of Poland indicates an early end of the
hiking cycle," ING Bank said in a research note.
    "Moreover, in recent days we have seen more and more
statements from the Polish government, which is clearly
preparing for an open conflict with the European Commission over
access to EU money. At the same time, we have not yet seen
tangible progress in Hungary on this issue."
    The forint is the region's worst performing currency this
year, down 6.5% versus the euro, despite strong support for
further tightening from central bank Deputy Governor Barnabas
Virag.
    In the Czech Republic, where the crown has been supported
recently by central bank interventions, inflation below
expectations took pressure off from further policy tightening.

    "(After Czech, U.S. inflation data) the CZK market is
pricing in only loosening of the monetary policy from now on,
starting as early as Q1 2023," a dealer at Komercni Banka said.
    Elsewhere in the region, the Romanian leu was
flat. Analysts expect the central bank to scale back tightening
moves at its two remaining meetings this year.
    Stocks were mixed across the region, with Bucharest's
bluechip index and Warsaw's up 1.0% and 0.5%,
respectively. Prague's edged 0.1% lower. In Budapest, MOL
 shares were down 1.22%, while index fell 0.5%.

           CEE       SNAPSHO   AT
           MARKETS   T        1234
                              CET
                     CURRENC
                     IES
                     Latest   Previou  Daily    Change
                              s
                     bid      close    change   in 2022
 Czech     Hungary   0        0
 Polish    Romanian  Croatian  Serbian   0        0
 Note:     calculated from             1800
 daily                                 CET
 change

                     Latest   Previou  Daily    Change
                              s
                              close    change   in 2022
 Prague              1248.32  1249.73   -0.11%  #VALUE!
                                   00
 Budapest            43907.6  44130.6   -0.51%  -13.43%
                           9        1
 Warsaw              1702.12  1694.11   +0.47%  -24.91%
 Buchares            12552.7  12424.5   +1.03%   -3.89%
 t                         2        7
 Ljubljan  Zagreb              1997.97  1987.72   +0.52%   -3.91%
 Belgrade  Sofia                618.14   617.13   +0.16%   -2.76%

                     Yield    Yield    Spread   Daily
                     (bid)    change   vs Bund  change
                                                in
 Czech                                          spread
 Republic
   2-year  s
   5-year  s
           s
 Poland
   2-year  s
   5-year  s
           s
           FORWARD
                     3x6      6x9      9x12     3M
                                                interba
                                                nk
 Czech                  7.29     7.19     6.79     7.28
 Rep       Hungary               13.55    13.34    13.09    12.02

 Poland                 7.46     7.34     6.97     7.03

 Note:     are for ask
 FRA       prices
 quotes
 *********************************************
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 (Reporting by Luiza Ilie in Bucharest, Pawel Florkiwicz in
Warsaw and Robert Muller in Prague; Editing by David Evans)



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