BUDAPEST, July 28 (Reuters) - Central European currencies

edged lower on Tuesday, with investors monitoring developments

in the Middle East and oil prices while also awaiting the U.S.

Federal Reserve's policy decision.

Oil prices continued to drop, hitting their lowest levels in

more than a week as hopes for a resolution to the U.S.-Israeli

war on Iran grew.

U.S. President Donald Trump said on Monday that Washington

was having "good talks" with Iran and that there was the chance

of a resolution. However, he said U.S. strikes would resume if

negotiations failed while Iran issued similar comments about

retaliation.

The Polish zloty eased 0.1% and was trading at

4.3255 to the euro, adding to its losses from the previous

session and giving up gains from the end of last week when

optimism over the Iran war helped CEE currencies strengthen.

"An attempt to push the EUR/PLN exchange rate down to the

4.30 level proved unsuccessful. The zloty weakened again...a

strong dollar remains the factor keeping the zloty weak," ING

wrote in a note.

"While the Czech koruna is moving in tandem with the zloty,

the Hungarian forint recorded a marked appreciation yesterday.

Local factors may therefore be offsetting the impact of global

events," they said.

The Czech crown was 0.1% lower, trading at 24.185

to the euro.

The forint also edged lower, trading at 360.30 per

euro, but it held on to most of its gains from the past two

sessions.

The Hungarian currency is the region's best performer so far

this year as it has added around 6.8%, supported by optimism

over a change in government and hopes that unlocking previously

frozen European Union funds could boost the economy.

Investors also awaited a meeting of the Fed that concludes

on Wednesday. CME FedWatch shows a 62% probability that

policymakers will keep rates unchanged, while 38% expect at

least a 25-basis-point increase.

CEE MARKETS SNAPSHOT AT 1032

CET

CURRENCIES Latest Previous Daily Change

trade close change in 2026

Czech 0

Hungar 00

forint

Polish Romani Serbia 00

dinar

Note: daily change calculated from 1800

CET

STOCKS Latest Previous Daily Change

close change in 2026

Prague 2675.7 2686.260 -0.39% -0.37%

6 0

Budape 144650 144473.3 +0.12% +30.28

st .09 7 %

Warsaw 8 %

Buchar 07 %

BONDS Yield Yield Spread Daily

(bid) change vs Bund change

in

spread

Czech s

2-year

Czech s

5-year

Czech s

10-yea

r

Poland s

Poland s

Poland s

r

FORWARD RATE 3x6 6x9 9x12 3M

AGREEMENTS interba

nk

Czech Poland Note: FRA quotes are for ask

prices