UPDATE 1-CEE MARKETS-Forint falls on rate hike uncertainty, MOL hit by fuel price cap

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 (Updates with further forint falls, cap on fuel prices)
    By Anita Komuves
    BUDAPEST, Nov 11 (Businesshala) - The Hungarian forint hit a
two-week low on Thursday, underperforming regional peers as a
firmer dollar pressured emerging markets and uncertainty
prevailed over the pace of a rate hike by the country's central
bank next week.
    Budapest stocks lost 0.72% as energy group MOL
dropped after the government said it would impose a cap on fuel
prices to keep a lid on surging inflation.
    MOL's stock slid over 6% to a 1-1/2-month low, before paring
losses to trade down 3.66% by 1132 GMT.
    The forint fell 0.66% to 356.75 against the euro
as a strong dollar weighed on emerging currencies, three FX
traders in Budapest said.   
    The greenback was perched at 20-month highs against the euro
and other currencies after the hottest U.S. inflation reading in
a generation encouraged bets on interest rate hikes.            
    "The uncertainty ahead of the rate meeting is adding to the
forint's woes," one trader said. "Everyone is trying to figure
out how far the bank is willing to go. Investors agree that a 15
basis-point hike is not going to be enough."  
    "The market is not yet convinced that the bank is willing to
deliver a hefty hike, and that shows in the price," another
trader said.
    The National Bank of Hungary (NBH) slowed the pace of its
tightening in September and hiked its base rate by 15 basis
points in September and then again in October. 
    A Businesshala poll of analysts expects a 30 basis-point hike to
2.1% on Tuesday after larger-than-expected hikes by the Czech
and Polish central banks and a surge in inflation that appears
to have caught the NBH off guard.
    Hungarian inflation jumped to 6.5% year-on-year in October.
    The Czech crown eased 0.31% to 25.2850 versus the
common currency.  
    The Romanian leu was a touch higher after the
central bank significantly lifted its annual inflation forecast,
expecting inflation to reach 7.5% in December, compared with a
previous forecast of 5.6%.
    Markets in Poland were closed for a national holiday.
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1232 CET           
                              CURRENC                           
                              IES                         
                              Latest   Previous  Daily    Change
                              bid      close     change   in
                                                          2021
 EURCZK=  Czech                                               %
 EURHUF=  Hungary                  0                     
 EURPLN=  Polish                                         
 EURRON=  Romanian                                       
 EURHRK=  Croatian                                            %
 EURRSD=  Serbian                  0                          %
          Note:     calculated from              1800           
          daily                                  CET      
          change Latest   Previous  Daily    Change
                                       close     change   in
                                                          2021
 .PX      Prague              1376.14  1373.710   +0.18%   +33.9
                                              0               8%
 .BUX     Budapest            53007.2  53389.23   -0.72%   +25.8
                                    3                         9%
 .WIG20   Warsaw              2366.59   2366.59   +0.00%   +19.2
                                                              8%
 .BETI    Buchares            12831.6  12779.74   +0.41%   +30.8
          t                         3                         6%
 .SBITOP  Ljubljan  <.SBITOP  1212.47   1209.14   +0.28%   +34.5
          a         >                                         9%
 .CRBEX   Zagreb              2005.67   2004.32   +0.07%   +15.3
                                                              2%
 .BELEX1  Belgrade  <.BELEX1   806.30    806.30   +0.00%   +7.71
 5                  5>                                         %
 .SOFIX   Sofia                605.52    603.70   +0.30%   +35.3
                                                              0%
                                                                
                              Yield    Yield     Spread   Daily
                              (bid)    change    vs Bund  change
                                                          in
          Czech                                           spread
          Republic                                        
 CZ2YT=R    2-year                                   s  
 CZ5YT=R    5-year                                   s  
 CZ10YT=                                            s  
          Poland                                                
 PL2YT=R    2-year                                   s  
 PL5YT=R    5-year                                   s  
 PL10YT=                                            s  
                    FORWARD                                     
                              3x6      6x9       9x12     3M
                                                          interb
                                                          ank
          Czech                  4.11      4.09     3.99    3.10
          Rep                                            
          Hungary                3.32      3.92     4.24    2.15
                                                          
          Poland                 2.97      3.25     3.32    1.58
                                                          
          Note:     are for ask                                 
          FRA       prices                                
          quotes                                          
          **********************************************        
          ****************                                
 
    
    

 (Reporting by Anita Komuves in Budapest; Editing by Aditya
Soni)
  
 
 
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