CEE MARKETS-Zloty weakest since early 2024, crown slips as FX comes under pressure

PRAGUE, Sept 24 (Reuters) - Central European currencies slipped on Thursday, with Poland's zloty hitting its lowest level since the start of 2024 and the Czech crown touching a five-month low, as the US dollar rallied on energy market worries.

• On bond markets, Romania's 10-year benchmark bond yield was bid at a one-year high of 7.66% as efforts to form a new government in Bucharest and uncertainty over the country's aims to cut high budget deficits increased investor caution.

• Currencies have been mostly on the decline this month and are facing pressure from rising risk aversion connected to developments in the US-Iran conflict in the Middle East.

• Analysts said markets were rattled by reports from website Politico that US President Donald Trump's administration was preparing plans for a 90-day diesel export ban. However, the White House has denied this.

• On Thursday, the zloty had fallen 0.3% to 4.3910 by 0854 GMT, trading off a session low of 4.401 — its weakest since January 2024.

• The crown was steady at 24.401 per euro mid-morning and hit a session low of 24.440.

• Hungary's forint traded 0.35% down at 366.25 per euro after hitting its strongest level for September — at 359.85 — this week. Gains were initially supported by the central bank's decision to keep interest rates unchanged and raise its inflation forecasts.

• The forint has been a clear outperformer this year, with good sentiment still helping it since Peter Magyar's centre-right government took power in May and ended nationalist Viktor Orban's 16-year rule.

• Bond yields have also been falling in Hungary, with appetite boosted by the state's aims of euro adoption.

• Other benchmark yields in central Europe have been rising and are at one-year or multi-year highs.