East Europe’s Hawks Fuel World-Beating Forint, Koruna Rally

Hawkish central bankers in Hungary and the Czech Republic have helped put their currencies at the top of the pack globally this year and a growing cohort of investors say the gains will continue.

Policymakers in Budapest and Prague are set to keep interest rates unchanged this week in order to tame persistent inflation risks. While the nations differ in terms of their economic growth and budget policies, their markets have been among the biggest winners this year as investors look for ways to diversify from US assets at a time when the Federal Reserve is cutting rates.