CEE MARKETS-Currencies retreat as Fed lifts dollar, focus turns to Czech central bank

WARSAW, Sept 17 (Reuters) - Central European currencies edged lower on Thursday after a sharp selloff triggered by the Fed's hawkish rate hike on Wednesday strengthened the dollar, while investors turned their focus to a Czech central bank meeting later in the day.

• The dollar clung to a seven-week high on Thursday after the Federal Reserve raised interest rates and flagged more hikes in the coming months.

• "CEEMEA currencies broadly weakened as the Fed’s rate hike and hawkish messaging drove USD higher. PLN underperformed the region...," Morgan Stanley said in a note.

• The Polish currency was down 0.1% at 4.3630 per euro at 0800 GMT. PKO BP analysts said the zloty would remain driven by impulses from core markets, particularly the dollar's moves.

• "At the same time, barring any new negative impulses, we expect the zloty’s depreciation against the euro to lose momentum soon and the 4.3750–4.38 resistance zone on EUR/PLN to hold firm." they added.

• The Czech central bank meets on Thursday and is expected to hold interest rates, with its main repo rate sufficiently above inflation.

• ING analysts said the outcome of the meeting is likely to be "dovish relative to market pricing, which currently implies more than four rate hikes," ING analysts said.

• The Czech crown lost 0.1% to 24.3350 per euro, while the Hungarian forint was stable at 364.40.

• Hungary's debt agency will sell benchmark bonds at an auction on Thursday which will be closely watched after a rise in yields across the region over the past days. Hungary will offer a total of 65 billion forints worth of bonds.

• Stock markets in the region mostly rose, with Warsaw .WIG20 leading gains, supported by a strong rise in Allegro ALEP.WA shares after the group lifted its full-year 2026 guidance for all key metrics.