BUDAPEST: The Polish zloty added to this week's gains in early trade on Tuesday as market nerves over a possible Brexit eased, while Hungary's forint was idle ahead of a monthly central bank rate meeting.
At 0751 GMT, the zloty was 0.07 percent stronger versus the euro, showing the biggest move among central European currencies. Shares in Prague and Budapest rose 0.3-0.2 percent, led by financial stocks.
Analysts said any bigger moves in the zloty, the region's most liquid currency, were expected only after Thursday's referendum over Britain's membership in the European Union.
"A (...) move towards 4.31 per euro would need a lasting improvement of the global sentiment, including, above all, a vote in Great Britain in favour of remaining in the EU," Bank Pekao said in a note.
Hungary's central bank, which has lowered its base rate to a record low of 0.9 percent to shore up the slowing economy, is expected to keep interest rates on hold at its Tuesday meeting, after promising it had finished rate cuts.
"MNB is widely expected to keep its benchmark rate on hold this month, and from here out for a couple of quarters," analysts at Commerzbank said in a note.
"Over the medium term, we expect inflation to turn down and remain below MNB's target range, which will likely open the door to further debate about long-term inflation prospects and to lower interest rates. We expect EUR-HUF to drift up to 320.00 by end-2016."
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