BUDAPEST: The Polish zloty gained nearly a third of a percent versus the euro in thin turnover on Tuesday, while other central European currencies were stuck in tight ranges, supported by the region's sound economic fundamentals.
The region's assets have been buoyed by comments pointing to only a gradual tightening of monetary policy by the US Federal Reserve, which means the region's assets will not lose their appeal relative to US debt.
The zloty has also received support in recent days from a further paring back of investors' expectations for a further 50 basis point cut in the central bank's 1.5 percent benchmark rate as new policymakers are due to be appointed early next year.
A Budapest-based dealer said the zloty had firmed early in the session in low turnover, with investors focusing on scheduled US economic data for clues about the pace of any further rate hikes that might also affect local assets.
The Hungarian forint eased 0.1 percent to the euro, edging away from the 312.9 level per euro, the 30-day moving average, which capped gains on Monday, analysts at Erste Bank said in a note.
"For the time being, this support level has held up," the analysts said. "Should the forint manage to firm past this level, the next support would be at 310 (per euro)."
Hungary's government and the central bank probably want the forint to trade near 310 versus the euro in the next days, the rate with which the year-end level of state debt had been calculated in the 2015 government budget, dealers have said.
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