By Anita Komuves

BUDAPEST, July 18 (Reuters) - The Hungarian forint

firmed on Thursday, extending its gains from the past week to

trade at a six-week high as it got support from a weaker U.S.

dollar, while other central European currencies treaded water.

The forint added 0.42% on the day to trade at

389.50 per euro, its strongest level since early June.

The forint has firmed about 2.4% in a little less than a

month, rebounding from a three-month low hit in the middle of

June.

"A weaker dollar is helping the forint, although it is a

calm summer trading day," an FX trader in Budapest said.

Top Federal Reserve officials said on Wednesday the U.S.

central bank is "closer" to cutting interest rates, which

contributed to an easing of the dollar.

"If the dollar stays near its current levels, and if

Hungarian central bank does not cut its base rate next week,

then the forint could continue to firm until 385-386," he said.

The National Bank of Hungary reduced its base rate to 7%

last month as expected, and has now cut borrowing costs by 1,100

basis points since May 2023.

Deputy Governor Barnabás Virág said earlier this week that a

possible further small reduction in the base rate is an "open

question" during next Tuesday's policy meeting.

Elsewhere, the Czech crown and the Polish zloty

were flat as markets were also eyeing the European

Central Bank (ECB) interest rate decision due later in the day.

The ECB is expected to keep interest rates unchanged while

signaling that its next move is still set to be a cut, even if

this guidance is likely to be vague and carry caveats.

Stocks in the region firmed, with Warsaw's blue-chip index

leading gains with a 0.6% climb. Budapest's equities

were trading 0.18% higher while Prague's stocks

added 0.21%.

CEE SNAPSH AT

MARKETS OT 1009

CET

CURREN

CIES

Latest Previou Daily Change

s

trade close change in

2024

Czech 0

Hungary 00 0 %

Polish % %

Romania % %

Serbian 00 0 % %

Note: calculated from 1800

daily CET

change

Latest Previou Daily Change

s

close change in

2024

Prague 1603.5 1600.25 +0.21 +13.4

7 00 % 1%

Budapes 72712. 72539.7 +0.24 +19.9

t 57 4 % 5%

Warsaw 2470.8 2454.63 +0.66 +5.46

6 % %

Buchare 18681. 18621.5 +0.32 +21.5

st 52 2 % 4%

Spread Daily

vs change

Bund in

Czech spread

Republi

c

ps s

ps

ps

Poland

ps s

ps

ps

FORWARD

3x6 6x9 9x12 3M

interb

ank

Czech 4.13 3.73 3.54 4.60

Rep Hungary 6.68 6.39 6.28 6.81

Poland 5.82 5.71 5.39 5.87

Note: are for ask

FRA prices

quotes

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