*
Forint down ahead of rate decision at 1100 GMT
*
China stocks fall for fifth session amid recovery concerns
*
Argentina's peso hits record low in black market
*
South African rand slips as leading indicator falls
*
Polish debt to GDP ratio to rise in next few years - paper
*
EM FX off 0.1%, stocks fall 1.0%
By Bansari Mayur Kamdar April 25 (Reuters) - The Hungarian forint slipped on Tuesday as investors awaited a central bank rate decision due later in the day, while Chinese stocks fell for a fifth session in a row on concerns over an uneven recovery in the world's second-largest economy. The forint slipped 0.2% against the euro, as of 0855 GMT, underperforming its central and eastern European peers. Investors focused on the National Bank of Hungary (MNB), which is expected to leave its base rate steady at 13% later in the day.
The forint has been under pressure since Deputy Governor
Barnabas Virag's flagging of the narrowing of the interest rate
corridor used by Hungarian policymakers looked to set the stage
for what would be the region's first rate cut since 2021.
"It is worth noting that the forint had appreciated over the
past quarter because of the high carry offered by the depo rate,
which at least offers one reason why MNB might have considered
reducing the rate," Tatha Ghose, FX analyst at Commerzbank, said
in a note.
"In the absence of a more significant rate cut, the forint's
rally may continue."
In Poland, Deputy Finance Minister Piotr Patkowski said in
an interview that the ratio of Polish public debt to GDP would
be 50.5% in 2023 and rise to 52.4% the year after that, and
subsequently to 53.6% in 2025. The Polish zloty was
flat against the euro.
Overall, the MSCI's index for emerging market currencies slipped 0.1%, as the dollar index inched
higher after fresh bank jitters had traders expecting U.S.
interest rate cuts before long.
South Africa's rand eased 0.4% against the dollar
after data showed the country's composite leading business cycle
indicator fell 0.7% month-on-month in February.
The Turkish central bank's total gross reserves were
expected to have fallen more than $5 billion to about $116
billion last week due to rising foreign currency demand as May
elections approach, said bankers.
Emerging market stocks fell 1.0%, extending losses
for a sixth session.
China's blue-chip CSI300 Index and the Shanghai
Composite Index closed lower for the fifth session after
data last Tuesday showed the economy's recovery following its
reopening from COVID restrictions was uneven.
South Korean shares fell more than 1% after the
country posted a slim first-quarter economic growth.
Argentina's peso tumbled to a record low on Monday in the
popular black market as an election build-up sows uncertainty
and the economy shows strains beyond the country's all-important
grains exports, hit by a crippling drought.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Subhranshu Sahu)
