Nov. 9 (Bloomberg) -- Hungary’s forint led gains in emerging-market currencies after International Monetary Fund comments signaling the dollar is overvalued boosted higher- yielding assets and the Group of 20 governments agreed to maintain stimulus measures.

The forint rose 0.7 percent to 273.21 per euro at 9:44 a.m. in Budapest, heading for the highest closing level in seven days. The currency was the biggest gainer against the euro among emerging-market currencies and led advances against the U.S. dollar, appreciating 1.6 percent to a two-week high.

“Inherent dollar weakness is the most important force today,” said Bartosz Pawlowski, an emerging-market strategist at BNP Paribas SA in London. “The comments from the IMF about the dollar being used as a funding currency has boosted confidence in emerging markets and in central and Eastern European currencies.”

The IMF signaled in a report published Nov. 7 that record low U.S. interest rates are funding global “carry trades” and the dollar is still overvalued, contributing to “upward pressure” on some emerging-market currencies. The dollar declined against 14 of its 16 major counterparts after the G-20 agreed to keep interest rates low and maintain record budget deficits until recoveries take hold.

The Czech koruna rose 0.4 percent to 25.623 per euro, heading for the highest closing level in a month, even after consumer prices fell in October for the first time in more than six years as the recession eroded demand. The Polish zloty appreciated 0.3 percent to 4.2277, near the highest closing level in seven days.

Hungarian BUX index of stocks rose 2.8 percent to the highest since Oct. 29. The Czech PX index rose 1.7 percent and Poland’s WIG20 benchmark climbed 1.6 percent.

To contact the reporter on this story: Laura Cochrane in London at lcochrane3@bloomberg.net

Last Updated: November 9, 2009 05:00 EST