Forint edges higher as CEE currencies steady amid Middle East uncertainty

EURPLN +0.16% EURCZK −0.05% EURHUF −0.04% PX +0.77% The Hungarian forint inched higher on Wednesday as it settled into a new range after retreating from a four-year high, while other central European currencies also steadied, as a strong U.S. dollar and uncertainty over the Middle East conflict weighed on sentiment. The war in Iran , which began with U.S. and Israeli air strikes on February 28, has rattled markets, lifted energy prices and fuelled inflation concerns. U.S. President Donald Trump said the U.S. may need to strike Iran again, but added that Tehran was seeking a deal to end the conflict, even as a tenuous ceasefire held. "CEE currencies have been trading very well since the start of the conflict, and even this week, despite some weakness, we have not seen a break from the usual ranges," ING said. "For now, we will rather move towards the upper edges of EUR/PLN 4.230-260 and EUR/CZK 24.250-400." "On the other hand, the risks are building on the downside with the rally of the U.S. dollar in recent days," ING added. STOCKS MIXED, CZECH DEFENCE GROUP JUMPS The Polish zloty EURPLN was a tad lower at 4.2545 to the euro at 0918 GMT, and the Czech crown EURCZK was a touch higher at 24.322 per euro. The forint EURHUF added 0.3% to 361.25 to the euro, and was around the 361 level for a fourth day. It has retreated slowly since hitting a high of 353.95 on May 8. The market has cheered a change in the Hungarian government after last month's election, with hopes new centre-right Prime Minister Peter Magyar can unlock EU funds held up in past disputes with Brussels. The highest interest rates in the EU have also supported the currency. Stock markets in central Europe were mixed, with Prague PX and Warsaw GPW rising. Shares in Czech defence group CSG CSG , traded in Amsterdam and Prague, soared over 11% at one point after solid quarterly results. The group has refuted a short-seller's report this month that questioned production capacity. CEE MARKETS SNAPSHOT AT 1118 CET CURRENCIES Latest trade Previous close Daily change Change in 2026 Czech crown EURCZK 24.3220 24.3300 +0.03% -0.64% Hungary forint EURHUF 361.2500 362.2500 +0.28% +6.40% Polish zloty EURPLN 4.2545 4.2520 -0.06% -0.91% Romanian leu EURRON 5.2285 5.2320 +0.07% -2.57% Serbian dinar EURRSD 117.3200 117.4500 +0.11% -0.02% Note: daily change calculated from 1800 CET STOCKS Latest Previous close Daily change Change in 2026 Budapest BUX 133222.34 134265.27 -0.78% +19.99% Warsaw GPW 3518.89 3586.34 -1.88% +10.52% Bucharest BET 30051.43 30014.39 +0.12% +22.97% BONDS Yield (bid) Yield change Spread vs Bund Daily change in spread Czech Rep 5-year (CZ5YT=RR) 4.5000 0.0630 +164bps +9bps Czech Rep 10-year (CZ10YT=RR) 4.9500 0.0630 +179bps +9bps Poland 5-year (PL5YT=RR) 5.4660 0.0730 +261bps +10bps Poland 10-year (PL10YT=RR) 5.7700 0.0480 +261bps +7bps FORWARD RATE AGREEMENTS 3x6 6x9 9x12 3M interbank Czech Rep (CZKFRA), (PRIBOR=) 3.87 4.28 4.48 3.56 Poland (PLNFRA), (WIBOR=) 4.08 4.47 4.80 3.85