CEE MARKETS 1-FX hold firmer, zloty leads on EU funds plans

                                
 * Polish deficit data due, FinMin FX plans in focus
                                
 * Forint holds on firming path
                                
 * Crown steady before government vote
                                
 
                                
 PRAGUE, April 26 (Reuters) - Emerging European currencies
held firmer on Tuesday, with the Polish zloty recovering ground
due to finance ministry plans to cash in euro funds on the
market.
                                
 Dealers said gains were subdued as the U.S. Federal Reserve
started a two-day policy meeting at which it was likely to
discuss when to begin exiting its ultra-easy monetary policy. 
Analysts mostly expect U.S. policymakers to stick to a plan
to complete a $600 billion bond-buying programme, keeping policy
loose at time when European central banks are already raising
interest rates.
                                
 A ratings warning last week for the United States has also
hit the dollar, giving a boost to higher-yielding emerging
market currencies.
                                
 By 0752 GMT, the zloty <EURPLN=> added 0.2 percent to test
the 3.94 per euro level which has proven resistant since the
unit began a retreat at the end of February.
                                
 Hungary's forint <EURHUF=> added a touch to 264.67 to the
euro and the Romanian leu <EURRON=> was flat from Friday.
                                
 "Emerging markets are still the part of the world that are
growing and doing quite well, and do not have the same debt
burden as others," a Stockholm-based currency dealer said.
                                
 "It is still an advantage to be in these markets, also for
carry reasons."
                                
 The Czech crown was also steady ahead of a government
no-confidence vote the centre-right coalition was expected to
easily win.
                                
 Czech President Vaclav Klaus appointed two new ministers
last week in a cabinet reshuffle resulting from a corruption
scandal that nearly brought down the government. [ID:nLDE73K0FJ]
                                
 Stock markets in the region gave little support, mostly
slipping after re-opening from a Monday holiday.
                                
 In Poland, the market is awaiting general government deficit
and debt figures for 2010, which are due today at 0900 GMT. At
the same time the statistical office is to publish revised
economic growth data for last year.
                                
 Analysts say any negative impact of a surprise on the
deficit would be muted given the finance ministry's plans to
sell part of the euros Poland receives from the European Union
on the market. [ID:nLDE73K12N]
                                
 "Taking into account the planned sale of EU funds on the
market we would not expect a large number of investors betting
on a weakening of the zloty," Bank BPH said.
                                
 The Hungarian forint was also expected to stay on a firming
path barring any unfavourable turn in global risk aversion.
                                
 The forint, the region's top gainer this year, has rallied
as investors favoured it over other regional currencies, mainly
the zloty, on the back of reform plans unveiled by Budapest in
March.
                                
 "The forint is still fuelled by the government's reform
plans, which markets have appreciated of late, but it also needs
a sustained global risk appetite to remain on a firming track,"
a Budapest dealer said.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>   24.121   24.111  -0.04%   +3.64%
Polish zloty     <EURPLN=>    3.94     3.947  +0.18%   +0.46%
Hungarian forint <EURHUF=>  264.67   264.75   +0.03%   +5.03%
Croatian kuna    <EURHRK=>    7.357    7.356  -0.01%   +0.31%
Romanian leu     <EURRON=>    4.074    4.074   0%      +3.9%
Serbian dinar    <EURRSD=>  100.6    100.61   +0.01%   +5.3%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +4 basis points to  -2bps over bmk*
7-yr T-bond   CZ7YT=RR   +3 basis points to  +48bps over bmk*
10-yr T-bond   CZ9YT=RR   +2 basis points to  +73bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1001 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaus, writing by Jason Hovet; editing
by Patrick Graham)