BUDAPEST/PRAGUE: The crown hit its strongest levels since 2013 on Thursday after Czech central bankers repeated that they could start policy tightening later this year.
Asset prices in Central European financial markets were mostly rangebound.
Investors held their breath ahead of Thursday's British elections, the European Central Bank's meeting and the congressional testimony from ex-FBI director James Comey.
Market impacts are unpredictable if Britain's Tories lose power, the ECB softens its policy stance or if the testimony raises risks to US president Donald Trump's rule, analysts said.
The crown still firmed 0.1 percent to 26.285 against the euro, touching its strongest levels since late 2013.
The Czech central bank (CNB) could make its first interest rate rise in the second half of this year, Vice-Governor Mojmir Hampl said late on Wednesday.
Another rate setter, Oldrich Dedek was quoted by the daily paper E15 said as saying that he saw no reason to question the bank's staff forecast which suggests a third-quarter hike.
The bank has repeatedly said that the more the crown firms from its firmer cap at 27 against the euro, which the bank removed in April, the less needed rate tightening could be.
Czech markets still price in a hike to come not earlier than the second quarter of 2018, Komercni Banka rates trader Dalimil Vyskovsky said.
"I actually think (the market) is aware of the risks of much earlier rate hike, but it seems to be that people are positioned already," he said, adding that much will depend on the crown's gains and inflation developments.
The CNB's 2-percent inflation target is lower than in Hungary or Poland. A hike would be the first in about a decade, and its tightening bias is in contrast with loose policy stance elsewhere in the region.
Poland's central bank could keep rates at record lows until the end of 2018 because inflation is expected to stabilise, its governor reiterated on Wednesday.
The zloty eased 0.2 percent past the 4.2 line against the euro, its weakest levels in almost three weeks.
The forint eased a shade after May annual inflation came in slightly higher than expected, at 2.1 percent. This, however, will not change the central bank's dovish stance, analysts said. Healthy demand is expected at Thursday's bond auction, traders added.
The dinar was steady ahead of a meeting by the Serbian central bank where its is expected to keep the region's highest benchmark rate at 4 percent on hold.
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