Central European currencies fell broadly on Friday as poor first-quarter growth data in the Czech Republic and Hungary added to the gloom after global policymakers dashed hopes of more stimulus for the economy. Contractions in the Czech and Hungarian economies were confirmed on Friday, showing the strain the euro zone debt crisis is putting on central Europe's export-reliant countries.
The Polish zloty, the region's most-liquid currency, led the retreat with a 1.2 percent drop to 4.302 to the euro, around its 200-day moving average of 4.31. The Czech crown lost 0.8 percent to 25.508 per euro and the Hungarian forint retreated 0.7 percent to 296.99, while Romania's leu was steady.
With the crisis deepening in the euro zone, the key trading, banking and financial partner for central Europe, currencies have lost up to 4.4 percent since the start of May and have been trading near their lowest levels this year. Hungarian bond yields rose 10-20 basis points, with 10-year paper at 8.4 percent - a level analysts see as unsustainable.