By 0920 GMT, the forint EURHUF= eased 0.2% to trade at 364.91 after having fallen to as low as 365 to the euro earlier in the session.
Over the past week, the region witnessed a spike in COVID-19 infections, passing milestones of deaths and new cases nearly every day, which kept investors wary.
"We expect a wait-and-see approach in the forint market today ahead of tomorrow's central bank's rate meeting," brokerage Equilor said in a note.
The bank is likely to leave its base rate unchanged at 0.6% on Tuesday after weaker-than-expected September consumer prices data eased some concerns about inflation, a Reuters poll of economists showed.
"The significant slowdown of inflation in September eased the pressure on the central bank," CIB Bank wrote in a note.
"Thus we do not expect a change in the base rate for a while, the bank could manage the forint's exchange rate using the one-week deposit tender if need be."
Of the eight economists who gave a forecast for the one-week deposit rate at the end of next month in a Reuters poll, six said it would stay at the current 0.75% level, with two analysts projecting another 15-basis-point increase over the coming weeks to 0.9%.
Deputy Governor Barnabas Virag said the bank would use this as a "fast response" tool, if needed, adding that renewed risk aversion posed the biggest risk to the inflation outlook.
Elsewhere, the Czech crown EURCZK= and the Polish zloty EURPLN= both edged 0.1% down to trade at 27.2850 and 4.5485, respectively. The Romanian leu EURRON= was flat at 4.8765.
Czech bond yields mostly ticked higher, continuing a correction trend as markets keep an eye on 2021 budget preparations, with the deficit expected to stay next year.
"Czech yields continued to edge higher in a correction after yield declines in September. This is something that we had expected," Erste Group Bank said.
AT 1120 CET
Note: daily change
Note: FRA quotes
are for ask prices
(Additional reporting by Jason Hovet in Prague; Editing by Ramakrishnan M.)
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