CEE MARKETS 1-Leu falls on politics, other FX mixed

                                
 WARSAW, Dec 9 (Reuters) - The Romanian leu fell to a
one-month low on Tuesday due to uncertainty over the country's
next governing coalition, while other emerging European
currencies were a touch higher.
                                
 The forint edged up following a surprise half point interest
rate cut by Hungary's central bank on Monday, shrugging off an
unexpected deficit in the country's trade balance.
                                
 Coalition talks continued in Romania on Monday, with the
leftist Social Democrats and centrist Democrat-Liberals moving
closer to forming a government, a prospect greeted with some
trepidation by the market. [ID:nL8196717]
                                
 At 0816 GMT, the Romanian currency <EURRON=> was down 0.2
percent down against the euro, trading at 3.877, and some
analysts said the slip was also due to normal flows.
                                
 "The leu is falling on commercial orders, not to mention
that the Social Democrats are not seen well by markets," one
dealer said.
                                
 Other currencies were a touch higher, with the Czech crown
(ERUCZK=> rising 0.3 percent to the euro. The forint <EURHUF=>
was 0.2 percent stronger against the common currency. 
                                
"For the time being, the forint seems to have taken the
surprise interest rate cut favourably and the external
environment is also supportive," a Budapest-based currency
dealer said. 
                                
 "The Dow is at a two-week high, so sentiment is better,
although players seem to have started out a bit more careful
this morning."
                                
 Despite improving sentiment on the global and local markets,
the Polish zloty <EURPLN=> weakened past the key technical level
of 3.90 against the euro, and analysts said the currency is
definitely in a depreciating trend.
                                
 "The zloty is weakening and it will probably go to 4.00 to
the euro," said Ernest Pytlarczyk, head of financial markets
research at BRE bank in Warsaw. 
                                
 "Since there are no signs the American economy is
recovering, the currency has no support to rise."
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2008 
Czech crown      <EURCZK=>   25.658    25.74  +0.32%   +3.17%
Polish zloty     <EURPLN=>   3.913    3.908   -0.13%    -8.68%
Hungarian forint <EURHUF=>   262.7    263.35  +0.25%    -3.9%
Croatian kuna    <EURHRK=>   7.189    7.19  +0.01%   +1.88%
Romanian leu     <EURRON=>   3.877    3.869   -0.21%    -8.29%
Serbian dinar    <EURRSD=>   82.945    84.034  +1.3%    -5.31%
All data taken from Reuters at 0816 CET.
Currency percent change calculated from the daily domestic 
close at 1500 GMT.
                                
 
                                
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 (Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz,
editing by Mike Peacock and Andy Bruce)