* Yuan news drives zloty to 1-month high, other FX up
* Hungary central bank seen holding interest rates
* Romania to auction T-bills, 7 pct seen as yield cutoff
PRAGUE, June 21 (Reuters) - The Polish zloty jumped to a one-month high, leading a rise in central European currencies and stocks on Monday as investors snapped up riskier assets after China allowed the yuan to rise.
China let the yuan rise to its strongest since July 2005, easing tensions with the West. [
] "EMEA should receive a boost from the increased risk appetite from the Chinese move. In particular it should benefit commodity currencies such as the rand and to a lesser extent CE-3 (zloty, forint and crown)," SEB said in a morning trade note.Stock markets rose 1.5-2.5 percent led by Bucharest <
>. The Hungarian forint <EURHUF=> rose 0.6 percent to a 2-1/2 week high, while the Romanian leu <EURRON=> added a similar amount and the Czech crown <EURCZK=> gained 0.3 percent.The zloty <EURPLN=> jumped 0.8 percent, also coming after the first round of a presidential election on Sunday.
Acting head of state Bronislaw Komorowski won the most votes, setting up a runoff vote against Jaroslaw Kaczynski, twin brother of the former president who was killed in a plane crash in April. [
]The yuan news, though, was the main driver in a region that is struggling to shake worries over the euro zone's debt crisis, despite lower debt levels and better growth prospects.
Hungary's central bank is expected to keep its main interest rate on hold at a record low of 5.25 percent later on Monday in its first meeting since government officials rattled markets with comments suggesting the country's debt problems were close to Greece. [
]Romania tenders 1.2 billion lei worth of one-year bills on Monday and traders widely expect the finance ministry to reject bids at yields above 7 percent, as it has done at similar tenders, which would mean it sells a lot less than planned.
Uncertainty over the government's ability to enforce sharp state wages and pensions cuts has led to a rise in yields on the secondary debt market in recent weeks.
The ministry has rejected all bids or scaled back issuance in tenders since May. [
]"They will accept everything that is below 7 percent which means they will probably raise 0.5 billion lei," said one trader in Bucharest.
"In the long term, this has proved to be a poor strategy. Yields are close to record lows in Romania and so the ministry should issue long-term debt as much as possible. But they are not."
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today in 2010 Czech crown <EURCZK=> 25.66 25.737 +0.3% +2.56% Polish zloty <EURPLN=> 4.024 4.054 +0.75% +1.99% Hungarian forint <EURHUF=> 277.65 279.29 +0.59% -2.63% Croatian kuna <EURHRK=> 7.199 7.2 +0.01% +1.53% Romanian leu <EURRON=> 4.217 4.24 +0.55% +0.48% Serbian dinar <EURRSD=> 103.97 103.527 -0.43% -7.78%
All data taken from Reuters at 0934 CET. Currency percent change calculated from the daily domestic close at 1600 GMT. For related news and prices, click on the codes in brackets: All emerging market news [
] Spot FX rates Eastern Europe spot FX <EEFX=> Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=> Latin America spot FX <LATAMFX=> Other news and reports World central bank news [ ] Economic Data Guide <ECONGUIDE> Official rates [ ] Emerging Diary [ ] Top events [ ] Diaries [ ] Diaries Index [ ] (Reporting by Reuters bureaus, writing by Jason Hovet)