CEE MARKETS-FX strengthens amid relief over tariffs, hawkish data

By Alan Charlish

WARSAW, Feb 14 (Reuters) - The Hungarian forint and Polish zloty firmed on Friday, amid relief that U.S. President Donald Trump stopped short of immediately implementing new tariffs and fresh signs that monetary policy in central Europe will likely remain tight.

Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports.

However, the directive stopped short of imposing fresh tariffs, instead kicking off what could be weeks or months of investigation into the levies imposed on U.S. goods by other trading partners and then devising a response.

The Hungarian forint firmed 0.34% versus the euro to 401.20, its strongest level since late-October, while the Polish zloty EURPLN= was 0.22% firmer at 4.168, hovering near 7-year-highs.

"(CEE currencies) are pretty strong on the back of the delay on these tariffs, which pushed the dollar weaker, and so other currencies are stronger," said a Warsaw-based FX trader.

"Then we have a chance for some news on the weekend regarding the (Ukraine) peace plan."

Ukrainian President Volodymyr Zelenskiy is expected to meet U.S. Vice President JD Vance in Munich on Friday after Trump startled U.S. allies by calling Vladimir Putin and announcing the start of talks to end the war in Ukraine.

Central European currencies have been supported by signals from central bankers that they will be cautious about cutting the cost of credit amid persistently high inflation.

Hungary's central bank will have to raise its 2025 inflation forecast after higher-than-expected January figures, the bank's director, Andras Balatoni, said late on Thursday.

Meanwhile in Poland, inflation came in above estimates in January at 5.3% year-on-year, data showed on Friday, while in Romania it was in line at 4.95%.

In Romania, investors were looking ahead to a central bank meeting on Friday that analysts expect will see the cost of credit remain on hold at 6.5%, the EU's joint-highest level alongside neighbouring Hungary.

The Romanian leu EURRON= and Czech crown EURCZK= were flat at 4.9769 and 25.0480 respectively.

For related news and prices, click on the codes in brackets:
All emerging market news EMRG CEEU CEE/

Spot FX rates
Eastern Europe spot FX EEFX=  Middle East spot FX MEFX=
Asia spot FX ASIAFX=          Latin America spot FX LATAMFX=

Other news and reports
World central bank news CEN Economic Data Guide ECONGUIDE
Official rates GLOBAL/INT   Emerging Diary EMRG/DIARY
Top events M/DIARY  Diaries DIARY Diaries Index IND/DIARY