ING: US Inflation Relief Supports Koruna and Forint

ING strategist František Táborský said that easing US inflation and a subsequent reduction in Fed rate hike expectations are benefiting Central European currencies. Despite higher oil prices and ongoing US-Iran tensions, the Czech koruna and Hungarian forint have found support.

Táborský maintains a bullish view on both the koruna and forint, predicting additional gains in the near term. The analyst cited the improved external environment as a key factor, though he acknowledged ongoing geopolitical risks.

The commentary follows a softer US CPI print that dampened hopes for aggressive Fed tightening, which typically boosts emerging-market currencies like those in Central and Eastern Europe.