(Updates after Hungary c.bank statement) PRAGUE/BUDAPEST, March 23 (Reuters) - The forint erased early losses on Tuesday and continued to recover from near-historic lows after the Hungarian central bank said it was committed to maintaining price stability during the third COVID pandemic wave. Other central European currencies fell as the U.S. dollar gained and the COVID-19 pandemic worsened in parts of central Europe, with the crown dropping 0.5% before Czech rate setters meet on Wednesday. Stocks were mixed. The Hungarian central bank left its key interest rates steady on Tuesday and said it did not expect runaway inflation but was ready to use appropriate instruments if upside price risks warranted it. Before the meeting, analysts had flagged chances of a need to raise short-term rates, like the one-week deposit rate, in the coming months amid forint weakness and rising inflation. The forint recovered from a 0.2% daily loss and was up 0.1% at 366.00 to the euro by 1435 GMT. Last week it had nearly struck its all-time low of 369.54, hit in April 2020. “The (central bank) statement is slightly more hawkish than usual, though it is still dovish,” an FX trader in Budapest said. “The message that the bank watches inflation very closely could help the forint in the next few days.” Bond yields did not move immediately after the NBH’s statement, a fixed-income trader said. Elsewhere, the crown dropped to an 11-day low at 26.23 per euro, although a dealer said it could make up some ground on Wednesday when Czech policymakers meet. Analysts expect the central bank to hold its key rate at 0.25% although most see the likelihood the bank could begin raising it later this year. The central bank’s own outlook has indicated as many as three hikes this year. Board members have cautioned against a rush as the pandemic’s impact remains unclear. The Czech Republic and other central European countries are dealing with a surge in COVID-19 cases and extended lockdown measures. Elsewhere, the Polish zloty fell 0.5% and Romania’s leu was flat. On stock markets, Prague gained and Budapest gained and Warsaw fell 0.4%. (Reporting by Jason Hovet in Prague and Anita Komuves in Budapest; Editing by Amy Caren Daniel, Alexandra Hudson)