CEE MARKETS 1-FX up on weak dollar, leu hits 8-month high

                                
 WARSAW, Jan 11 (Reuters) - The Romanian leu reached an
eight-month high and the Polish zloty  rose to a five-week high
on Monday, as central Europe's currencies were lifted by
improving output and trade data along with a weaker dollar.
                                
 Romania's trade deficit shrank 60 percent in the January to
November period, data showed on Monday, with the pace of decline
in imports outpacing that of exports. [ID:nLDE6090FS]
                                
 The leu <EURRON=> rose to bid at 4.134 to the euro by 0912
GMT, up 0.7 percent from Friday. [ID:nLDE60A0CM]
                                
 With the highest interest rates in the region, a new
government in place and expectations the passing of an austere
2010 budget bill this month will free up International Monetary
Fund aid, investors have become more bullish on the leu despite
vulnerability still in the economy.
                                
 Some dealers said there is now more activity on regional
cross trades with the Czech crown as Czech interest rates are
the lowest in the region. 
                                
 The crown <EURCZK=> was 0.1 percent up on Monday at 26.216
per euro after inflation data on Monday signalled the central
bank did not have room to cut interest rates further.
[ID:nLDE60A07Z]
                                
 "There are more people going long leu against the crown," a
Prague dealer said. "It is still tricky as the Romanian economy
is still fragile and you could get hurt... But people will push
the leu unless some bad news comes out."
                                
 In Poland, the only country in emerging Europe to avoid
recession last year, the zloty tested new levels, rising to the
strong side of 4.05 to the euro before easing a touch.
                                
 Some dealers said the zloty technically was headed to the
psychologically important level of 4.0 per euro.
                                
 "The dollar is definitely weaker against the euro, the zloty
is attacking its recent highs as a wave of optimism flooded the
(region's) market," one Warsaw-based dealer said.
                                
 The dollar's rise, which had weighed on the region, reversed
last week after weaker-than-expected U.S. jobs data published on
Friday. Stronger economic signals from Poland and the region
have also lifted currencies.
                                
 A top aide to Polish Prime Minister Donald Tusk said the
economy expanded by 1.6 percent in 2009. [ID:nLDE60A0AM]
                                
 Elsewhere, Hungary's forint was a touch up at 267.1 to the
euro after data showing the country posted a 4.2 billion euros
trade surplus in the first 11 months of 2009. [ID:nLDE60A0BK]
                                
 
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>   26.216   26.253  +0.14%   +0.39%
Polish zloty     <EURPLN=>    4.055    4.066  +0.27%   +1.21%
Hungarian forint <EURHUF=>  267.06   267.54   +0.18%   +1.23%
Croatian kuna    <EURHRK=>    7.291    7.291   0%      +0.25%
Romanian leu     <EURRON=>    4.134    4.161  +0.65%   +2.5%
Serbian dinar    <EURRSD=>   97.23    97.37   +0.14%   -1.39%
All data taken from Reuters at 1013 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.

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 (Reporting by Reuters bureaus, writing by Dagmara
Leszkowicz, editing by Stephen Nisbet)