Czech crown touch weaker, remains in range

PRAGUE, Sept 21 (Reuters) - The Czech crown traded a touch weaker versus the euro <EURCZK=> on Thursday but remained locked in its range capped by 28.500 seen in the past week.

The currency last traded at 28.470 at 0815 GMT, from 28.44 late on Wednesday.

The central bank's board held a regular weekly meeting, but had no policy issues on agenda.

The board is due to discuss interest rates on Sept. 27, and some analysts expect it to tighten policy by 25 basis points. Most in the market however still expect the bank to hold off a rate hike until at least October.

The CNB last raised rates, by 25 basis points, in July to contain inflation in an economy growing at record 6 percent.

The crown has lost nearly 2 percent since hitting a life-time high of 27.955 per euro in early August.

The main drag on the crown have been a weaker export momentum and a worsening of the fiscal outlook amid a political stalemate which has hampered policy making and made prospects for the 2007 budget unclear.

The government is due to discuss the central government budget, the main part of the public sector finances, on Monday.

Policy makers have effectively abandoned 2010 as the euro entry target in the past weeks.

"Nervousness surrounding the outlook for public finances continue to be reflected in Czech markets, although in a milder form," said BNP Paribas in a daily report. The bank recommends a long euro/crown position with the target of 28.80 and stop-loss at 28.35. ----------------- MARKET SNAPSHOT AT 0815 GMT ----------------- Crown/euro <EURCZK=> last deals at 28.470 (-0.09 pct) Crown/dollar <CZK=> at 22.360 bid (0.06 pct)

5-year yield due Oct 2010 <CZ5YT=RR> 3.76 pct bid (7 bps) 10-year yield due Jan 2016 <CZ10YT=RR> 3.92 pct bid (-1 bps)

5-yr CZK/EUR mid yield spread <DE114147=> 4 bps (vs -1) 10-yr CZK/EUR mid yield spread <DE113529=> 14 bps (vs 16)

Current levels versus prior domestic close at 1500 GMT ---------------------------------------------------------------

((Reporting by Jan Lopatka, editing by Cheryl Juckes; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

- For previous updates on Czech currency moves click on [CZK/]

--------ECONOMIC DATA RELEASES (double click to access)-------- LIVE Czech economic data releases <ECONCZ> INSTANT VIEWs on Czech economic data [CZ/INSTANT]

---------------------------RELATED NEWS------------------------ Czech Market Debt [CZ-DBT] Czech forex [CZ-FRX] Hungary Market Report [FT/] Poland Market Report [PLN/] Emerging Market Debt [EMRG/DBT] Emerging forex [EMRG/FRX] All Emerging Markets news [EMRG] CEE indicators [CONV/DIARY] All East Europe News [EEU] E.Europe equities [.CEE] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST] Czech indicators [CZ/ECI] Hungary indicators [HU/ECI] Slovak indicators [SK/ECI] Polish indicators [PL/ECI] --------------------LIVE PRICES & DATA------------------------- Crown Spot Against EUR <EURCZK=> Against USD <CZK=> Czech Bonds <0#CZBMK=> C.Europe Bonds <CEEBONDS> Crown FRAs <CZKFRA=TTKL> Central Bank Fixings <CNB02> Contrib. Cross Rates <CZKX1=> Czech Central Bank <CNB01> -------------------------------------------------------------- HOW TO FIND INFORMATION YOU NEED

|<REUTERS> | <NEWS> | <PHONE/HELP> |

|<EQUITY> | <BONDS>| <MONEY> | <COMMODITY> | <ENERGY> ---------------------------------------------------------------

Keywords: MARKETS CZECH CROWN OPEN