By Jason Hovet and Anita Komuves PRAGUE / BUDAPEST, Nov. 25 (Reuters) – The forint gained for the second day on Thursday and rebounded from an all-time low to lead gains in Central Europe, after Hungary’s central bank raised its One-week deposit of 40 basis points at 2.9%, as it fights rising inflation risks. The increase in the deposit rate was the second in a week, after the bank raised its prime base rate to 2.1% this month and said it was ready to raise the rate on deposits from ‘a week above base rate, which traders and analysts have said could support the forint. As of 9:49 am GMT, the forint had risen 0.55% on the day to 366.7 per euro, following a session high near 368. lately, but the international environment really needs to change for the forint could strengthen significantly, ”said one trader. The forint hit an all-time low of 372 per euro on Tuesday as central European currencies come under pressure due to the strength of the US dollar and an increase in COVID-19 cases in Europe that worries investors economic impacts. Hungary reported a record number of new infections on Wednesday, following the same trend in the Czech Republic and Slovakia, whose governments have already tightened restrictions to stem the outbreak. Slovakia entered a two-week lockdown on Thursday. Elsewhere, the Polish zloty gained 0.2% and the Czech crown rose 0.1%. Central banks in the region have initiated policy tightening in response to spikes in inflation due to global factors linked to supply chain issues and rising energy costs, as well as to energy markets. strained work in Central Europe. Polish central bank governor Adam Glapinski told Interia’s website on Wednesday that recent rate hikes should help the zloty, which has hit its lowest level in 12 years. “If the strengthening of the currency was short-lived, the central bank could step in and intervene in the market,” Erste Group Bank said. ** Hungarian Forint since 2008: https://tmsnrt.rs/3xoDmH6 CEE SNAPSHO AT MARKETS T 1049 CET CURRENC IES Last previous daily change in 2021 EURCZK Czech EURHUF Hungary 0 0 EURPLN Polish EURRON Romanian EURHRK Croatian EURRSD Serbian 0 0 Note: calculate the daily CET change of 1800 from STOCKS. WIG20 2235.52 2239.75 -0.19% +12.68>% .BETI Bucares 12,598.5 12,536.2 + 0.50% +28.48 t 1 5% .SBITO Ljubljan <.sbito p a> % .CRBEX Zagreb <.crbex> % .BELEX Belgrade <.belex> .SOFIX Sofia <.sofix> % BONDS Yield Yield Spread Daily variation (bid) vs Bund variation in Czech spread Republic CZ2YT = 2 years s CZ5YT = 5 years s CZ10YT s Poland PL2YT = 2 years s PL5YT = 5 years s PL10YT s FRA 3×6 6×9 9×12 3M interbank C zech Hungary Poland Note: FRA quotes are for the asking prices ************************************* * *** ************************** (Report by Jason Hovet in Prague and Anita Komuves in Budapest; edited by Uttaresh.V)