WARSAW: Hungary's forint rose ahead of a central bank decision later on Tuesday while shares in Poland's Kredyt Bank jumped as much as 18 percent on news of a merger with Spain's top lender Banco Santander .
Other currencies in the region were little changed, with the Polish zloty the region's most liquid currency remaining close to a new 6-month high versus the euro after a 7 percent rally this year.
"Emerging market currencies are favoured by the market right now and we have witnessed a build-up of huge positions," said a Warsaw-base FX dealer adding that the market has become ripe for a correction.
The forint rose 0.6 percent, reversing Monday's losses after a Moody's warning, and traded at 289.88 to the euro by 0832 GMT.
The forint has gained over 8 percent this year on hopes that the government will be able to get a financial backstop from international lenders.
Hungary's is seen keeping interest rates flat at 7 percent on Tuesday and cutting them only later this year if the government signs a funding deal with the International Monetary Fund and European Union, a Reuters poll of analysts showed.
The bank will announce its decision at 1300 GMT. The zloty was flat at 4.1590, trading just 0.2 percent off a new 6-month high at below 4.1495.
Comments
Comments are closed for this article.