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CEE MARKETS-Ailing forint hits two-week low as rising gas prices weigh

By Anita Komuves BUDAPEST, Aug 16 (Reuters) - The Hungarian forint extended its losses on Tuesday, plunging to a two-week low and underperforming its regional peers as the currency was pressured by soaring gas prices due to the country's heavy reliance on energy imports. The forint fell 1.36% on the day and was trading at 404.10 per euro, adding to steep losses in the previous session when it weakened after S&P on Friday cut Hungary's credit rating outlook to negative from stable. "A ratings outlook change would normally not move markets, but there are so many uncertainties around the forint that this time it's having an effect," a Budapest-based forex trader said. "The rise in gas prices is putting a heavy pressure on the forint today, and it again shows that this currency is the most vulnerable in the region." The forint has shed more than 8% since the start of 2022, which makes it the worst performer in the CEE region. Soaring energy prices have recently weaekened the forint as they worsen the external balance of Hungary, traders and analysts have said. The forint has also been pressured by Hungary's row with the EU over democratic standards, which has led to a freeze in pandemic recovery funding. Elsewhere, the Czech crown eased 0.23% to 24.537 as it was negatively affected by the fall of the forint, an FX trader in Prague said. "Also, some people might be trying to cash in the previous growth of the crown," he added. On Tuesday, two Czech central bankers expressed views that were considered dovish by the market, another trader said. The Polish zloty weakened 0.31% to 4.6910 to the euro. The recent strengthening of the dollar and dovish comments from the NBP do not support the continuation of the zloty's recent firming, Alior Bank wrote in a note. "This week, we expect the EUR-PLN to return above 4.70," they wrote. CEE SNAPSH AT MARKETS OT 1028 CET CURREN CIES Latest Previo Daily Change us bid close change in 2022 EURCZK Czech 0 0 % EURHUF Hungary 00 00 EURPLN Polish EURRON Romania % EURHRK Croatia % % EURRSD Serbian 00 00 % % Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2022 .PX Prague 1256.2 1250.9 +0.42 2 600 % .BUX Budapes 43132. 43034. +0.23 -14.96 t 90 16 % % .WIG20 Warsaw <.WIG20 1753.1 1735.0 +1.04 -22.66 > 7 7 % % .BETI Buchare 12678. 12631. +0.37 -2.93% st 20 92 % .SBITO Ljublja <.SBITO 1175.8 1173.7 +0.17 -6.34% P na P> 3 9 % .CRBEX Zagreb <.CRBEX 2014.4 2006.0 +0.42 -3.12% > 9 9 % .BELEX Belgrad <.BELEX 843.45 843.61 -0.02% +2.76 15 e 15> % .SOFIX Sofia <.SOFIX 622.55 622.29 +0.04 -2.07% > % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= ps CZ5YT= ps CZ10YT ps Poland PL2YT= ps PL5YT= ps PL10YT 0 ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Hungary Poland Note: are for ask FRA prices quotes **************************************** ********************** (Additional reporting by Robert Muller in Prague and Alan Charlish in Warsaw; Editing by Rashmi Aich)