CEE MARKETS 1-FX rebounds but trade still volatile

                                
 WARSAW, Oct 9 (Reuters) - Poland's zloty and Hungary's
forint opened stronger against the euro on Thursday after rapid
falls Wednesday but trade remained volatile as the credit crisis
weighed and dealers said currencies are likely to weaken
further.
                                
 At 0700 GMT the zloty <EURPLN=> was 0.6 percent up against
the euro at 3.4502, while the Hungarian forint  <EURHUF=> was
0.3 percent up at 251.68 to the euro.
                                
 "It seems the market has calmed down. But the situation
overall is still nervous and trade will be volatile," said Jan
Koprowski, a dealer at BNP Paribas.
                                
 He said the zloty is likely to move in a range of 3.40-3.50
against the euro and the central bank Monetary Policy Council's
(MPC) extraordinary meeting last night did not impact the
market.
                                
 Markets got little comfort from coordinated global interest
rate cuts on Wednesday. The move added further pressure to east
European central banks to ease policy in the face of a deepening
economic slowdown in the wider world.
                                
 In the Czech Republic, industrial output in August fell more
than expected on declining orders from abroad [ID:nL9289481].
                                
 The Czech crown <EURCZK=> weakened against the euro, as the
market also looked to a central bank meeting this morning where
policymakers may discuss an interest rate move.
                                
 "They will likely cut by 25 basis points in November," a
Prague-based dealer said, adding the market will start pricing
in further cuts. "The question is whether (the central bank)
will make a 25 or 50 basis points cut."
                                
 He said the crown could again test the 24.95 per euro
resistance level in the coming days.
                                
 The Romanian leu <EURRON=> traded at 3.843 against the euro,
compared with a domestic close of 3.879.
                                
 
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2008 
Czech crown      <EURCZK=>   24.690   24.641  -0.20%   +6.82%
Polish zloty     <EURPLN=>    3.448    3.474  +0.75%   +4.24%
Hungarian forint <EURHUF=>  251.710  252.420  +0.28%   +0.45%
Croatian kuna    <EURHRK=>    7.138    7.130  -0.11%   +2.57%
Romanian leu     <EURRON=>    3.854    3.879  +0.64%   -7.65%
Serbian dinar    <EURRSD=>   80.508   80.518  +0.01%   -2.22%
All data taken from Reuters at 0850 CET.
Currency percent change calculated from the daily domestic 
close at 1500 GMT.

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 (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; Editig by Toby Chopra)