(Adds Hungary cen bank decision, forint reaction, trader quote)
By Anita Komuves
BUDAPEST, Oct 22 (Reuters) - Hungary's forint firmed
against the euro on Thursday after the central bank left its
base rate unchanged, as widely expected, and said it could keep
the rate at the current level for a prolonged period if needed.
The forint was up 0.32% on the day and trading
at 400.55 per euro at 1347 GMT. The currency briefly firmed past
the psychologically important level of 400 after the rate
decision was announced but soon gave up those gains.
"The market got what it had expected, that's why we did
not see a big move in the forint's rate," an FX trader in
Budapest said. "But the central bank's messages could put a cap
on weakening for a while."
The National Bank of Hungary
kept
its base rate at 6.50%, halting cuts for now
despite inflation falling to its 3% target for the first time
since 2021.
The bank could keep its base rate at the current 6.5% level
for a prolonged period if needed, Deputy Governor Csaba Kandracs
said.
The forint, central Europe's worst performing currency in
2024, has weakened sharply in recent weeks, raising speculation
of a rebound in price growth and shifting expectations to a
pause in rate cuts.
The forint fell beyond the 400-per-euro level this month for
the first time since March 2023.
In Poland, the zloty was little moved, edging down
0.02% on the day to 4.32 per euro. The Czech crown
firmed 0.11% and was trading at 25.242, recovering some losses
from the previous session.
Central European currencies have recently come under
pressure from uncertainties over the U.S. presidential election,
with chances of a Donald Trump victory helping the U.S. dollar
and weighing on the region's assets, analysts say.
On Tuesday, the dollar clung to a 2-1/2 month high on
expectations the U.S. Federal Reserve will take a measured
approach to rate cuts.
"The crown is staying in a lightly defensive position," CSOB
bank said. "In the coming sessions, we do not expect any
significant improvement (as) nervousness before U.S. elections
will be evident in risk assets sensitive to a rise in U.S.
market rates."
CEE SNAPSHOT AT
MARKET 1547
S CET
CURRENCIE
S
Latest Previo Daily Change
us
trade close change in 2024
EURCZK Czech 0
EURHUF Hungary 00
EURPLN Polish EURRON Romania EURRSD Serbian 00
Note: calculated from 1800 CET
daily
change
Latest Previo Daily Change
us
close change in 2024
.PX Prague 1630.55 1627.5 +0.19% +15.31
200 %
.BUX Budapes 74046.72 73990. +0.08% +22.15
t 26 %
.WIG20 Warsaw 5
.BETI Buchare 39 %
Spread Daily
vs Bund change
in
Czech spread
Republi
c
CZ2YT= 0
CZ5YT= CZ10YT Poland
PL2YT= 0
PL5YT= PL10YT FORWARD RATE
AGREEMENTS
3x6 6x9 9x12 3M
interba
nk
Czech Hungary Poland Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Additional reporting by Jason Hovet in Prague and Alan
Charlish in Warsaw; Editing by Mark Potter and Ed Osmond)
Line of Credit 
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