East European Currencies Whipsaw on Dollar Gains, EU Budget

Eastern European currencies’ attempt to rebound from this week’s losses floundered as the European Commission submitted a proposal to cut funding to the countries in the bloc’s new budget period. The European Union’s plans to cut funding to the region ended a brief recovery in the Polish zloty and Hungarian forint, which held close to the weakest levels in months against the euro following Tuesday’s thin-liquidity driven sell-off. “The rally in usually quiet euro-central eastern European currency crosses has been stunning over the last week,” said Kiran Kowshik, a currency strategist at UniCredit SpA in London.