CEE MARKETS-Forint stays on the back foot despite rate hikes

PRAGUE, July 28 (Reuters) – The forint found little relief on Thursday after the Hungarian central bank sharply raised its one-week deposit rate, as expected after a massive base rate hike this week, while other currencies flat-lined amid ongoing market jitters. Central European currencies have been under pressure in the latest market souring, with energy prices and war in Ukraine weighing on outlooks. Weakening currencies are complicating central bankers’ work to tame surging inflation, especially in Hungary, where the central bank raised its base rate by 100 basis points to 10.75% on Tuesday, taking borrowing costs into double-digit territory for the first time since late 2008.But the forint has not been able to benefit, pressured by soaring gas prices and a risk-off international mood, traders and analysts say. “Market participants were concerned about gas prices rising again, the worsening external balance, regional news of war and the Fed’s rate hikes,” said Andras Horvath, Global News senior analyst at Takarekbank.