CEE MARKETS-Forint on front foot thanks to high Hungarian rates

By Alan Charlish and Anita Komuves

WARSAW, July 10 (Reuters) - The Hungarian forint firmed on Thursday amid expectations that its interest rates will remain on hold, while other currencies in central Europe were treading water with traders waiting for more tariff news.

The forint EURHUF=, which has strengthened recently on the back of expectations that stubbornly high inflation will offer the central bank no room to cut its main rate from its current level of 6.5% this year, was 0.25% firmer against the euro at 398.85.

"It's hard to say why the forint is the only one moving," said an FX trader in Budapest.

"But there was a rate cut in Poland recently, and rates in the Czech Republic were lower anyway, so the forint has the biggest rate differential and that gives it strength in the carry trade story, that could be the biggest factor in this."

The trader said that other currencies in the region were waiting for news about potential U.S. tariffs, particularly on the European Union.

Trump on Wednesday announced a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1. Trump earlier on his Truth Social media platform issued August 1 tariff notices to seven minor trading partners.

Central European currencies were little moved by the announcement.

The Polish zloty EURPLN= was broadly stable at 4.245.

"The zloty... in our opinion, will remain in consolidation against the euro around 4.24-4.25 until the end of this week," PKO BP analysts said in a note.

The Czech crown EURCZK= was 0.08% firmer at 24.635, while the Romanian leu EURRON= was 0.05% weaker at 5.0778.

Romania's central bank held its benchmark interest rate at 6.50% as expected on Tuesday, warning that recently approved tax hikes will push annual inflation considerably higher in the short term than previously forecast.

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