PRAGUE, Sept 2 (Reuters) - Hungary's forint fell to its lowest level since end-April on Wednesday as central Europe's currencies retreated after the U.S. dollar bounced back following strong manufacturing data. Central European currencies had found support from a weaker dollar over the past week as the euro, the region's main reference currency, hit its strongest against the U.S. currency since May 2018. The euro's rise came after the Federal Reserve announced it would tolerate periods of higher inflation. But the dollar reversed overnight after U.S. manufacturing activity increased more than expected in August. This hit emerging currencies like in central Europe, although the region's stocks followed global equities higher as better data from major economies supported recovery hopes. The forint was down 0.4% at 357.20 to the euro at 0846 GMT, after touching its weakest level since April 28 at 357.80, and passing a technical resistance level around 356. "The next few days will be decisive with respect to whether we will see a... correction starting or the weakening continues," Equilor analysts said. The forint has been the most under pressure in central Europe since its central bank loosened monetary policy amid the coronavirus crisis and, this week, expanded bond purchases as part of an earlier announced plan. Hungary's economic output in the second quarter also contracted the most in central Europe, data confirmed this week. In Poland, the zloty lost 0.4% to 4.409 per euro and the Czech crown shed 0.3% to 26.310, approaching a one-month low beyond 26.325. Romania's leu was steady around 4.84. A Prague dealer said low liquidity was helping exaggerate crown moves. "If (the euro) moves further down, I think we might see a test of 26.400," the dealer said. In stock markets, Budapest rose 1.0% to lead gains, followed by a 0.9% rise in Warsaw. CEE SNAPSHO AT MARKETS T 1046 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 26.3100 26.2305 -0.30% -3.34% = crown => EURHUF Hungary <EURHUF 357.200 355.805 -0.39% -7.29% = forint => 0 0 EURPLN Polish <EURPLN 4.4090 4.3905 -0.42% -3.46% = zloty => EURRON Romanian <EURRON 4.8415 4.8410 -0.01% -1.10% = leu => EURHRK Croatian <EURHRK 7.5350 7.5345 -0.01% -1.19% = kuna => EURRSD Serbian <EURRSD 117.530 117.580 +0.04% +0.03% = dinar => 0 0 Note: calculated from 1800 daily CET change STOCKS Latest Previou Daily Change s close change in 2020 .PX Prague 909.23 903.330 +0.65% -18.50% 0 .BUX Budapest 34847.5 34499.9 +1.01% -24.38% 4 0 .WIG20 Warsaw <.WIG20 1788.35 1772.61 +0.89% -16.82% > .BETI Buchares 8995.99 9009.43 -0.15% -9.84% t .SBITO Ljubljan <.SBITO 848.99 849.60 -0.07% -8.30% P a P> .CRBEX Zagreb <.CRBEX 1623.07 1625.92 -0.18% -19.55% > .BELEX Belgrade <.BELEX 692.31 692.07 +0.03% -13.64% 15 15> .SOFIX Sofia <.SOFIX 430.27 430.87 -0.14% -24.27% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 0.1600 -0.0200 +084bp -2bps RR RR> s CZ5YT= 5-year <CZ5YT= 0.6870 -0.0410 +136bp -2bps RR RR> s CZ10YT <CZ10YT 1.0870 -0.0210 +153bp +1bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.1430 -0.0050 +082bp +0bps RR RR> s PL5YT= 5-year <PL5YT= 0.7230 -0.0210 +140bp +0bps RR RR> s PL10YT <PL10YT 1.3820 -0.0030 +183bp +3bps =RR 10-year =RR> s FRA 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 0.37 0.39 0.42 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.79 0.87 0.93 0.62 ><BUBOR => Poland <PLNFRA 0.24 0.23 0.24 0.23 ><WIBOR => Note: FRA quotes are for ask prices ******************************************** ****************** For related news and prices, click on the codes in brackets: All emerging market news Spot FX rates Eastern Europe spot FX Middle East spot FX Asia spot FX Latin America spot FX Other news and reports World central bank news Economic Data Guide Official rates Emerging Diary Top events Diaries Diaries Index (Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; editing by Uttaresh.V)
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