CEE MARKETS 1-FX eases on dollar rally, Austria bank worries

                                
 BUDAPEST, Dec 15 (Reuters) - Central European currencies
fell early on Tuesday, with the Czech crown and Hungary's forint
in the lead, while the Romanian leu was stable after a
months-old political gridlock edged closer to resolution.
                                
 Dealers said a combination of factors triggered the
weakening of the region's currencies, including a dollar rally,
and reports Austria had put one of its major banks on a watch
list a day after it nationalised Hypo Group Alpe Adria.
[ID:nSGE5BE09B] [ID:nLDE5BD00D]
 The crown <EURCZK=> and the forint <EURHUF=> fell over half
a percent versus the euro, with the Hungarian unit easing past a
key technical level at 275.50, which may open the way for
further easing, some dealers said.
                                
 "The dollar is bullish and there are these bank worries in
Austria," a Budapest based dealer said.
                                
 The euro hit a 2 1/2-month low against the dollar on
Tuesday.
                                
 "There are position closings as the year-end approaches,"
another Budapest currency dealer said.
                                
 The forint reacted little to final data showing Hungary's
industrial output fell by 12.9 percent in October, in line with
a first estimate [ID:nBUD005199], while Czech markets were
eyeing the year's final interest rate decision due on Wednesday.
                                
 The Czech and Polish central banks are seen keeping interest
rates on hold at their last 2009 meetings, eyeing inflation
pressures, but Hungary was predicted to cut rates further to
help its recession-hit economy. [ID:nLDE5BD1QC]
                                
 The leu <EURRON=> was broadly unchanged after a Romanian
court declared President Traian Basescu victor of a closely
fought election on Monday, handing him a second 5-year term and
the power to end a political crisis that has threatened an
IMF-led aid deal. [ID:nLDE5BD25V]
                                
 Romania's finance minister said a third, 1.5 billion euro
loan tranche from the International Monetary Fund may come as
early as January. [ID:nWLA0717] The Fund started a three-day
visit to Bucharest on Monday.
                                
 The zloty <EURPLN=> also retreated ahead of inflation data
expected later in the day.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   26,045    25,835   -0,81%   +2,72%
Polish zloty     <EURPLN=>   4,166    4,149     -0,41%    -1,22%
Hungarian forint <EURHUF=>   276,02    274,23   -0,65%    -4,52%
Croatian kuna    <EURHRK=>   7,263    7,274     +0,15%   +1,4%
Romanian leu     <EURRON=>   4,248    4,245     -0,07%    -5,5%
Serbian dinar    <EURRSD=>   95,77    95,87     +0,1%    -6,57%
All data taken from Reuters at 0937 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.
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  (Reporting by Reuters bureaus, Writing by Gergely Szakacs)