Hungarian Forint Firms as Neighbors' Currencies Weaken After Surprise Polish Rate Cut

The Hungarian forint firmed vs the Polish zloty and Czech crown after Poland's surprise rate cut last week. Forint remains attractive due to Hungary's high interest rates.

The Czech crown slipped after inflation fell slightly as expected, raising chances of a rate cut. The crown has dropped nearly 1% since Poland's cut.

The Polish zloty extended its slide after last week's shock rate cut, nearing a 5-month low. The cut triggered the zloty's biggest weekly drop vs euro since Ukraine invasion.

The forint-for-zloty trade has been popular since last week as the zloty is less attractive after the rate cut while forint rates remain high.

Czech utility CEZ shares fell to 7-week low on news some government parties oppose ending a windfall tax early, which the finance minister sought.