CEE MARKETS-Currencies hover off highs as rally pauses

PRAGUE, Feb 27 (Reuters) - Central European currencies settled off of multi-year or multi-month highs on Thursday, with dollar gains cooling a rally after vague pledges from U.S. President Donald Trump to impose tariffs on Europe.

The Polish zloty, Hungarian forint and Czech crown have all firmed past key levels this week amid talks on a ceasefire in the Ukraine-Russia conflict and a German election result that boosted hopes of an economic recovery to help the region's export-reliant manufacturing.

Markets shifted partly into a wait-and-see mood after Trump floated the idea on Wednesday of a 25% "reciprocal" tariff on European cars and other goods.

In Poland, the zloty EURPLN= was off a seven-year high of 4.132 to the euro hit this week and trading 0.1% lower at 4.14 by 0928 GMT.

ING analysts said Poland had less exposure to U.S. markets and the German economy - Europe's main driver - than peers although risks of a zloty retreat remained.

"The market continues to play for PLN strengthening in connection with expectations of a ceasefire in Ukraine," ING said.

"Breaking 4.1350/EUR may be a signal for further PLN strengthening ... On the other hand, after the significant strengthening of the PLN since the beginning of the year, the risk of profit taking and a correction ... is growing."

The forint EURHUF= weakened 0.1% to 399.60 to the euro, but held on the strong side of the 400 level and near four-month highs.

The forint got a lift after the Hungarian central bank left its base rate steady on Tuesday for a fifth month straight at the European Union's joint-highest 6.5% level and signalled its inflation outlook this year was shifting higher.

Commerzbank said in the longer term, factors like re-accelerating inflation, a new central bank governor who markets perceive as potentially dovish and the continued blocking of European Union funds could hinder the forint.

"While we find the current rally in HUF consistent with broader market developments, for all the above reasons, we see EUR-HUF trading higher near the 417.0 level by the end of 2025," Commerzbank wrote in a note.

The crown EURCZK= also retreated from an eight-month high hit this week but hovered past the psychological 25 per euro level at 24.958. The Romanian leu EURRON= was steady at 4.9774 per euro, and stock markets in the region extended gains.