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2025-10-30 19:05:20
[Fed Hawkish Stance Causes Central and Eastern European Currencies to Weaken] ⑴ Institutional quotes show that at 18:52 Beijing time on Thursday, the Hungarian forint slipped 0.2% to 388.50 against the US dollar, still a step away from the 16-month high reached in early October. ⑵ The Czech krona fell slightly by 0.05% to 24.35, continuing to hover near its more than two-year high; the Polish zloty fell 0.1% to 4.2440, with the National Development Bank (BGK) predicting a short-term range of 4.23-4.25. ⑶ ING points out that after the Fed's rate cut on Wednesday, Powell's hawkish stance ended risk sentiment, and the strengthening of the US dollar against the euro has hit the previously crowded forints and zlotys hardest. ⑷ The Hungarian Statistics Bureau released third-quarter GDP figures that were lower than expected, and stubborn inflation forced the central bank to maintain the EU's highest benchmark interest rate of 6.5%; Czech data released on the same day showed that domestic demand and wage growth drove the economy better than expected. Capital Economics says this will further strengthen the Czech central bank's hawkish stance, and regional interest rate differentials may become a buffer for the foreign exchange market.
