PRAGUE, July 27 (Reuters) - Central Europe's currencies firmed to multi-week highs on Monday, with the Czech crown at its strongest since mid-March as a weaker dollar boosted the market.
Currencies kept up gains seen since last week, lifted by a spike in the euro - the region's main reference currency - against the dollar, dealers said.
The crown firmed to its strongest against the euro since March 13, when the novel coronavirus outbreak started hammering central European markets. However, some dealers said more resistance could be seen ahead at current levels.
The crown EURCZK= traded up 0.25% at 26.203 to the euro at 0921 GMT, while the Polish zloty EURPLN= led gains with a 0.3% rise and was at 4.4007 to the euro after earlier touching 4.4000, its highest since June 3.
"Euro/dollar is on the top, gold is on the top. I don't think there is too much space for a bigger move (from here)," a Prague-based dealer said.
Stocks and currencies in the region were lifted last week by the European Union's 750-billion-euro coronavirus recovery package, which would see healthy portions sent to Poland, Hungary and Romania.
The Hungarian forint EURHUF= gained 0.2% to 345.90 to the euro, having firmed past key levels last week. Equilor analysts said the 342-343 level, at which the forint last traded in the first half of June, would be the next key point.
The region's stock markets moved mostly sideways, with Warsaw .WIG20 and Prague .PX up as much as 0.25% and Budapest .BUX down 0.2%.
Debt markets were mixed. Fitch ratings agency affirmed the Czech Republic at 'AA-' on Friday evening and left a stable outlook.
Raiffeisen said though that S&P's downgrade for Slovakia to a negative outlook could put pressure on the rest of the region.
AT 1121 CET
Note: daily change
Note: FRA quotes are for ask prices
(Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; Editing by Jan Harvey)
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