<div id="readability-page-1"><div> Central Europe's currencies regained momentum on Thursday, inching back toward recent highs after the U.S. Federal Reserve delivered a less hawkish outlook than some had expected.The region's currencies have been under pressure in recent sessions, but remain close to multi-month highs, with a mix of reasons, from better economic data and tight monetary policy to dollar weakness, keeping prospects up.The crown and forint — the region's best performers this year as central bank interest rates have been put on hold — had retreated recently after hitting 26- and 22-month highs, respectively, early in December.They moved back on stronger footing on Thursday as dollar losses overnight pushed some investors into emerging market assets, following a U.S. rate cut and what analysts view as a dovish tone.&#34;The surprisingly dovish tone of yesterday's Fed meeting sent the dollar on the defensive, which could benefit the Czech crown today,&#34; bank CSOB said in a note. &#34;A return below the level of 24.20 EUR/CZK is therefore likely in the absence of domestic figures.&#34;INTEREST RATES ON HOLDThe crown had risen 0.1% to 24.235 to the euro by 1006 GMT. It had traded as strong as 24.106 last month.Czech central bankers, who have paused a cutting cycle since last reducing rates in May, reinforced messages of stable rates on Thursday. Policymaker Jakub Seidler told Bankovnictvi magazine that stable rates were most likely for some time, while Jan Kubicek told Bloomberg that bets on a hike next year might be premature.In Hungary, where interest rates are at a EU-joint-highest 6.50%, the forint gained half a percent to 381.85 to the euro, and was within 0.4% of its more recent high. It continued gains since data this week showed inflation eased more than expected in November.&#34;With the Fed rate cut everything went back to where we were before,&#34; a Budapest trader said. Hungary's Government Debt Management Agency (AKK) sold 95 billion forints ($290.88 million) worth of government bonds at an auction on Thursday, raising its original offer of three series of bonds with a total value of 55 billion forints ($168.40 million). The average yield on the benchmark 10-year-bond was 6.91%. The Polish zloty trailed, down just a touch at 4.228 per euro around where analysts see a ceiling at the moment after it hit a seven-month high of 4.218 on November 25. While the Polish central bank has been cutting rates this year, its economy has gained, helping buoy the zloty. On Wednesday, central bank members said monetary policy is moving into a wait-and-see phase and scope for further interest rate cuts was limited.&#34;We maintain that the Monetary Policy Council's less-than-dovish rhetoric should support an increase in short-term swap and bond rates,&#34; Bank Millennium said.<div><table><tbody><tr><td colspan="6">CEE MARKETS SNAPSHOT AT 1106 CET </td></tr><tr><td colspan="2">CURRENCIES </td><td>Latest trade</td><td>Previous close</td><td>Daily change</td><td>Change in 2025</td></tr><tr><td>Czech crown</td><td></td><td>24.2350</td><td>24.2700</td><td> +0.14%</td><td> +4.02%</td></tr><tr><td>Hungary forint</td><td></td><td>381.8500</td><td>383.6000</td><td> +0.46%</td><td> +7.75%</td></tr><tr><td>Polish zloty</td><td></td><td>4.2280</td><td>4.2265</td><td>-0.04%</td><td> +1.15%</td></tr><tr><td>Romanian leu</td><td></td><td>5.0899</td><td>5.0901</td><td> +0.00%</td><td>-2.23%</td></tr><tr><td>Serbian dinar</td><td></td><td>117.2800</td><td>117.4500</td><td> +0.14%</td><td>-0.28%</td></tr><tr><td colspan="6">Note: daily change calculated from 1800 CET </td></tr><tr><td colspan="6"></td></tr><tr><td colspan="2">STOCKS </td><td>Latest</td><td>Previous close</td><td>Daily change</td><td>Change in 2025</td></tr><tr><td>Prague</td><td></td><td>2566.17</td><td>2563.9100</td><td> +0.09%</td><td> +45.79%</td></tr><tr><td>Budapest</td><td></td><td>109398.36</td><td>108571.16</td><td> +0.76%</td><td> +37.91%</td></tr><tr><td>Warsaw</td><td></td><td>3018.96</td><td>3021.37</td><td>-0.08%</td><td> +37.73%</td></tr><tr><td>Bucharest</td><td></td><td>23781.48</td><td>23909.91</td><td>-0.54%</td><td> +42.23%</td></tr><tr><td colspan="6"></td></tr><tr><td colspan="2">BONDS </td><td>Yield (bid)</td><td>Yield change</td><td>Spread vs Bund</td><td>Daily change in spread</td></tr><tr><td>Czech Rep 2-year</td><td>(CZ2YT=RR)</td><td>3.5640</td><td>0.0610</td><td> +139bps</td><td> +7bps</td></tr><tr><td>Czech Rep 5-year</td><td>(CZ5YT=RR)</td><td>4.1380</td><td>-0.0050</td><td> +166bps</td><td> +0bps</td></tr><tr><td>Czech Rep 10-year</td><td>(CZ10YT=RR)</td><td>4.6520</td><td>-0.0120</td><td> +179bps</td><td>-1bps</td></tr><tr><td>Poland 2-year</td><td>(PL2YT=RR)</td><td>4.0580</td><td>0.0110</td><td> +189bps</td><td> +2bps</td></tr><tr><td>Poland 5-year</td><td>(PL5YT=RR)</td><td>4.6190</td><td>-0.0160</td><td> +214bps</td><td>-1bps</td></tr><tr><td>Poland 10-year</td><td>(PL10YT=RR)</td><td>5.2670</td><td>-0.0080</td><td> +241bps</td><td>-1bps</td></tr><tr><td colspan="6"></td></tr><tr><td colspan="2">FORWARD RATE AGREEMENTS</td><td>3x6</td><td>6x9</td><td>9x12</td><td>3M interbank</td></tr><tr><td>Czech Rep</td><td>(CZKFRA), (PRIBOR=)</td><td>3.59</td><td>3.61</td><td>3.64</td><td>3.54</td></tr><tr><td>Poland</td><td>(PLNFRA), (WIBOR=)</td><td>3.76</td><td>3.61</td><td>3.58</td><td>4.05</td></tr><tr><td colspan="6">Note: FRA quotes are for ask prices </td></tr></tbody></table></div></div></div>

Central Europe's currencies, including the forint and crown, strengthened after the U.S. Federal Reserve's dovish outlook. The crown rose 0.1% to 24.235 per euro, while the forint gained 0.5% to 381.85 per euro. Hungary's bond auction raised 95 billion forints. The Polish zloty slightly decreased, with limited scope for further rate cuts. Stock markets in Prague and Budapest rose, while Warsaw and Bucharest saw declines. Bond yields varied across the region.

Forint leads as central Europe's currencies move to firmer ground