Bets on Eastern Europe Pay Off as Forint, Zloty Surge This Year

Currencies in eastern Europe are notching some of the biggest gains in the emerging market world as traders bet on interest rates staying higher for longer.

The Hungarian forint, Czech koruna and Polish zloty have richly rewarded traders this year, with double-digit gains against the dollar. The inflation focus of the three central banks has also handed holders of local-currency government bonds returns of between 17% and 23% in dollar terms.