CEE MARKETS 1-Currencies hold onto gains, Romania euro plan eyed

                                
 BUDAPEST, April 29 (Reuters) - Eastern Europe's currencies
held recent gains on Friday, supported by the euro's rise versus
the dollar, and were expected to trade in narrow ranges in a
session weakened by the closure of London markets. 
                                
 The Polish zloty <EURPLN=> was flat, while the Hungarian
forint <EURHUF=> was up 0.2 percent at 0729 GMT.
                                
 "The lack of investors from London, where the market is
closed due to the royal wedding, will favour a quiet session,"
Bank BPH analysts wrote in a note.
                                
 "Hence, we expect the EUR/PLN to remain in the 3.93-3.96
range and activity to be subdued."
                                
 A dealer in Budapest said he expected the forint to trade
between 263.50 and 265 to the euro.
                                
 The Hungarian currency -- and the whole region -- is still
supported by the dollar's weakness and continued capital flows
to the region's higher-yielding assets.
                                
 Investors are attracted by Hungary's high interest rates --
at 6 percent <NBHI> -- and continued optimism over the
government's fiscal plans, which they hope would keep the budget
deficit below 3 percent of GDP in coming years, after an
expected surplus this year due to big one-off revenues.
                                
 Romania's leu <EURRON=> also stayed close to one-year high
levels and was up close to 0.3 percent from Thursday's close.
                                
 An International Monetary Fund team started a review of
Romania's new two-year aid deal on Wednesday which will continue
through May 9. It is widely expected to note Romania's progress
in meeting fiscal deficit targets. [ID:nLDE73L02W]
                                
 The government will also hold a meeting later on Friday to
approve the country's updated convergence programme -- its
report to the EU on progress towards adopting the euro and
fulfilling the economic criteria needed to do so.
                                
 Government sources have said Romania plans to drop its goal
of switching to the single currency in 2015 and is only seeking
to enter the pre-euro Exchange Rate Mechanism (ERM-2) in
2013-2014. [ID:nLDE73P0C5]
                                
 The Czech crown <EURCZK=> was down 0.2 percent.
                                
 The region's stock markets traded lower, with Budapest<.BUX>
down 0.7 percent and Warsaw <.WIG20> down 0.5 percent.
 --------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>   24.139    24.093  -0.19%   +3.57%
Polish zloty     <EURPLN=>   3.937    3.939    +0.05%   +0.53%
Hungarian forint <EURHUF=>   263.8    264.28   +0.18%   +5.38%
Croatian kuna    <EURHRK=>   7.359    7.359     0%      +0.29%
Romanian leu     <EURRON=>   4.067    4.078    +0.27%   +4.08%
Serbian dinar    <EURRSD=>   99.15    99.44    +0.29%   +6.84%
All data taken from Reuters at 0929 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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  (Reporting by Reuters bureaus; Writing by Krisztina Than;
editing by Patrick Graham)