The market rally driven by peace hopes and falling oil prices has given way to caution as global investors turn their attention to critical US economic data.
The Hungarian forint had reached multi-year highs earlier in the week, with the euro dipping below 350 HUF and the dollar approaching 301 HUF, but that momentum stalled following the Federal Reserve's latest meeting.
Wall Street consensus estimates point to US consumer price inflation rising to a 4.2% annual rate in May.
This expected reading would mark a significant uptick in price pressures, complicating the Federal Reserve's path forward.
The Bureau of Labor Statistics is scheduled to release the official figures on Wednesday, providing the first concrete data point for traders assessing the inflation trajectory.
The timing of the data release is critical, as it precedes the Federal Reserve's policy decision later in the week.