CEE MARKETS-FX down as Polish rate hike impact fades; Czech rate pricing rises - NewsBreak

PRAGUE, Oct 12 (Reuters) - Central Europe's currencies mostly weakened on Tuesday, hit by a stronger U.S. dollar that cut into risk appetite while a Polish rate hike last week and a jump in Czech inflation failed to provide further momentum. Poland's zloty and the Czech Republic's crown have been kept in check by the dollar so far this month - with the greenback's strength expected to continue to limit gains seen in the coming months, according to an October Reuters poll. That is happening even as the region's central banks have largely resumed policy tightening to calm inflation that is soaring to multi-year highs. Poland's central bank surprised markets last week when it delivered a 40 basis point interest-rate hike, sooner than any analysts expected. But the zloty has since slipped back from a three-week high to levels seen before the Oct 6 rate move. It traded down a touch at 4.585 to the euro at 0910 GMT on Tuesday. Political risks were also weighing, after Poland's highest court