Central European currencies will gain value from a declining U.S. dollar during the next six months yet the Hungarian forint will retreat from its 10-month peak. The forint has gained strength from Hungarian central bank monetary tightening yet analysts predict it will decline 1.7% to 405 per euro by year-end because of Trump’s trade policies and decreasing inflation.
The Czech crown achieved its highest value in 18 months because of the country’s strict monetary policies. The poll predicts the Czech crown will maintain its current value at 24.60 per euro. The Polish zloty will experience minimal changes while Romania’s leu faces a 0.9% decline because of fiscal problems.
The analysts predicted that future interest rate reductions in Hungary and the Czech Republic would lead to currency depreciation yet their strong foreign exchange reserves and favorable economic growth rates would reduce the pressure.
