WARSAW, May 29 (Reuters) - The Polish zloty pulled back

slightly on Wednesday from its highest in more than four years,

swayed by global factors, with a May inflation reading smack on

target offering little impulse, as Polish rate-setters hold onto

stable rates policy.

Polish consumer inflation (CPI) in May inched up to 2.5%

year-on-year, the mid-point of the central bank's target, and

0.1% on the month, both figures below all analyst forecasts in a

Reuters poll.

By 0907 GMT the Polish zloty eased 0.1% against

the euro to 4.2540, after briefly hitting 4.2470, its strongest

level since Feb. 2020, on Tuesday.

Asked whether the CPI data impacts the zloty, a Warsaw-based

trader said "theoretically it should, because if the figures are

lower it suggests that there is a greater chance for interest

rate cuts."

"But here it seems to me that it is mainly global factors,

such as the fact that the dollar has firmed."

A stronger dollar usually spells weaker investor sentiment

towards riskier assets, such as emerging market currencies.

According to Bank Millennium markets analyst Mateusz

Sutowicz, "macro data from the domestic economy are not

particularly exciting at the moment, because they do not change

the (monetary policy) council's view, so we do not expect local

events to affect the zloty.

The National Bank of Poland has kept rates on hold since

October 2023 and signalled further pause through the end of

2024, citing uncertainties in the upcoming quarters.

Sutowicz added that inflation readings from the Eurozone and

the U.S. could make Friday's session more exciting and that he

didn't expect "fireworks" for the zloty today ahead of the

public holiday in Poland on Thursday.

In Hungary the forint slipped 0.2% to 385.05 per

euro, pulling away from the 382.90 hit on Tuesday, its strongest

standing since early February.

"The forint is trading sideways these days, an overall

positive sentiment in emerging markets and an attractive carry

trade giving it a backing," a Budapest-based trader said.

"I expect the currency to trade in the range between

380-388."

In Prague, the crown was 0.1% lower at 24.70,

trading within its range since mid-May around 4-1/2-month highs.

CEE SNAPSH AT

MARKETS OT 1107

CET

CURREN

CIES

Latest Previo Daily Change

us

trade close change in 2024

Czech 0 0

Hungary 00 00

Polish Romania Note: calculated from 1800

daily CET

change

Latest Previo Daily Change

us

close change in 2024

Prague 1545.9 1543.0 +0.19 +9.33%

8 400 %

Budapes 68946. 68546. +0.58 +13.74

t 77 85 % %

Warsaw 5 7

Buchare 17835. 17933. -0.54% +16.03

st 73 12 %

Spread Daily

vs change

Bund in

Czech spread

Republi

c

ps

ps

ps

Poland

0 ps

0 ps

0 ps