CEE MARKETS-Forint scales new 1-1/2-year high, buoyed by US sanctions waiver

BUDAPEST, Nov 10 (Reuters) - The forint EURHUF= firmed 0.4% to a fresh 1-1/2-year high to the euro on Monday, outperforming other central European currencies, after import-reliant Hungary secured an exemption from U.S. sanctions for using Russian energy.

With Hungary heavily reliant on Russian energy imports, Prime Minister Viktor Orban met with his longtime ally U.S. President Donald Trump at the White House on Friday to press for a reprieve.

While a White House official said the exemption was for one year only, Hungarian officials say the waiver is indefinite. Orban, who faces an election next year, said without the deal energy costs would have surged, hitting the wider economy.

ING economists said the agreement, which also involves Hungary buying $600 million worth of U.S. liquefied natural gas and $700 million worth of military equipment based on State Department figures "should be good news for the markets."

"The Hungarian government won some time with this deal in Washington, so the carry traders can continue what they have been doing, and the forint can strengthen further," a Budapest-based currency trader said.

"This deal means carry traders can feel safe about a continued high base rate, and they can be sure that no sudden problem will arise so the forint's rate will not suddenly plunge."

The forint is leading gains among central European currencies this year, bolstered by the European Union's joint-highest 6.5% benchmark interest rate.

Orban also said Hungary had agreed on a financial shield with Washington to protect its currency and public finances, without giving further details.

The Polish zloty EURPLN= gained 0.15% in morning trade after rating agency S&P Global reaffirmed Poland's A- rating with a stable outlook on Friday, highlighting strong growth prospects in central Europe's largest economy.

"Given that the market had largely priced in a scenario where S&P changes Poland's rating outlook to negative this week, keeping Poland's rating and outlook unchanged will be slightly positive for the zloty exchange rate and Polish bond prices this week," Credit Agricole economists said.

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