During early European deals on Monday, the Hungarian forint recovered from an Asian session's 11-day low against the US dollar and a 1 - 1/2 - month low against the euro.

Investors now await Hungary's central bank interest rate decision, which is due at 8:00 am ET. Analysts expect the base rate to be maintained at 5.25%.

The Hungarian forint is currently worth 287.68 against the euro and 221.83 against the dollar. If the Hungarian currency gains further, it may likely target 215.2 against the dollar and 283.0 against the euro.

The Hungarian currency tumbled in Asian deals today as the International Monetary Fund and the European Union have suspended a review of Hungary's 20 billion euro financing agreement at the weekend.

The IMF froze its review of Hungary's funding programme over the weekend, leaving it unable to access funds from an existing EUR20 billion aid package. The move casts doubt on the government's hopes of securing a standby loan for 2011 and 2012 as it tries to revive the country's ailing economy.

The EUR20 billion bailout from the IMF and EU saved Hungary from financial meltdown in 2008 and helped the previous government continue with reforms that helped dramatically reduce the country's formerly ballooning deficit.

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