The Hungarian forint edged higher on Tuesday, recovering losses from the previous session, while the Polish zloty remained largely unchanged as markets awaited a key interest rate decision from Poland’s central bank.

The Polish zloty traded at around 4.2315 per euro as investors positioned ahead of the Monetary Policy Council’s decision, with analysts widely expecting the benchmark interest rate to remain unchanged at 3.75%. Market commentary suggested that even upcoming guidance from the National Bank of Poland governor is unlikely to significantly shift expectations for monetary policy.

Recent inflation data showed Polish consumer prices easing further, with annual inflation slowing to 3.1% in May from 3.2% in April, coming in below expectations. This has led markets to scale back bets on rate hikes in 2026, as pricing pressures appear to be cooling faster than previously anticipated.

In Hungary, the forint strengthened 0.4% to around 354.70 per euro, recovering toward recent multi-year highs. The currency has been one of the strongest performers in Central Europe this year, supported by expectations of improved economic stability and potential inflows linked to European Union funding.

Analysts noted that geopolitical headlines, particularly developments related to U.S.–Iran negotiations, contributed to short-term volatility in regional currencies, with the forint briefly weakening earlier in the week before rebounding.

Hungary’s currency has gained more than 8% so far this year, driven partly by optimism that the release of previously frozen European Union funds will support economic activity after years of stagnation. The European Commission recently approved €16.4 billion in funding for Hungary, further boosting sentiment.

Elsewhere in the region, movements were modest: the Czech crown and Romanian leu showed only slight changes, reflecting a broadly cautious tone across Central European foreign exchange markets ahead of further macroeconomic signals.