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CEE MARKETS-Forint falls to historic low on gas leak worries as region's fx weakens

       By Anita Komuves
       BUDAPEST, Sept 29 (Reuters) - The Hungarian forint fell
to a record low versus the euro on Thursday, leading losses in
central Europe as currencies in the region were hit by worries
over gas leaks on the Nord Stream pipelines leading from Russia
to Europe.
    The forint fell 1.22% on the day to trade at
418.60 per euro. The Polish zloty was 0.64% lower and
trading at 4.8440 versus the common currency.
    "Even if there is enough gas in Europe for this winter, it
will be very hard to fix these pipelines and that has a very
negative effect on European economic prospects and gas prices,"
an FX trader in Budapest said.
    "Both the Hungarian and Polish currency are victims of this
negative mood that is hitting most assets in Europe."
    The European Union said it suspects sabotage behind the gas
leaks as it remained unclear who might be responsible for the
    The strength of the dollar and global recession fears were
also pressuring CEE currencies while liquidity was very low, a
trader in Warsaw said.
    The National Bank of Hungary said on Tuesday that it was
ending its year-long rate hike cycle and this step could leave
the currency vulnerable to shifts in global sentiment, some
analysts have said.
    On Thursday the bank raised its one-week deposit rate by 125
bps to 13% at its weekly tender, in line with expectations,
after a similar increase in the base rate on Tuesday.

    Policymakers across central Europe are seeking to end a
cycle of rate hikes running since last year.
    The Czech crown eased 0.13% to 24.678 per euro
ahead of a central bank meeting later in the day where no change
was expected, especially after August inflaton data showed the
first price growth slowdown in over a year.
    The Czech central bank has intervened in markets since May
to prevent any excessive weakening.
    "In the... scenario where future inflation prove that the
central bank was too hasty to end its hiking cycle, we would
witness sharp pressure on the exchange rate. But otherwise, the
koruna is likely to trade sideways for now," Commerzbank said.
                  CEE      SNAPSH   AT
                  MARKETS  OT      0957
                           Latest  Previo  Daily   Change
                           bid     close   change  in
 EURCZK  Czech    0       0               %
 EURHUF  Hungary  00      00               %
 EURPLN  Polish   EURRON  Romania  EURHRK  Croatia  EURRSD  Serbian  00      50       %       %
         Note:    calculated from          1800
         daily                             CET

                           Latest  Previo  Daily   Change
                                   close   change  in
 .PX     Prague            1125.7  1144.9  -1.68%
                                4     200
 .BUX    Budapes           37350.  37731.  -1.01%  -26.36
         t                     15      27               %
 .WIG20  Warsaw   6       7               %
 .BETI   Buchare           10757.  10669.   +0.82  -17.64
         st                    27      33       %       %
 .SBITO  Ljublja  %       %
 .CRBEX  Zagreb   0       2
 .BELEX  Belgrad  %       %
 .SOFIX  Sofia    Yield   Yield   Spread  Daily
                           (bid)   change  vs      change
                                           Bund    in
         Czech                                     spread
 CZ2YT=           ps
 CZ5YT=           0      ps
 CZ10YT           ps
 PL2YT=           ps
 PL5YT=           ps
 PL10YT           ps
                           3x6     6x9     9x12    3M
         Czech    Hungary  Poland   Note:    are for ask
         FRA      prices
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