By Anita Komuves
BUDAPEST, Oct 7 (Reuters) – Central European currencies held stable on Wednesday, having briefly weakened after U.S. President Donald Trump’s announcement on Tuesday that negotiations about a new fiscal stimulus would stop until after the Nov. 3 election.
The announcement led to larger moves on the FX market Tuesday evening, Equilor wrote in a note.
Some emerging currencies, including the Hungarian forint, weakened as the announcement led to a risk-off mood and a strengthening of the dollar, they added.
The sour mood was replaced on Wednesday by optimism a stimulus package would be introduced after the election.
The forint EURHUF= was up 0.1% on Wednesday, trading at 359.450 versus the common currency.
Investors were also eyeing the Polish central bank’s rate decision later today. All 16 analysts polled by Reuters expect the key interest rate to remain on hold at a record low of 0.1%.