Forint fairly stable versus euro as rate cut stop is history
The forint was trading at 308.07 to the euro late Wednesday on the interbank forex market, slightly down from final quotes at 307.95 on Tuesday. At 308.22 to the euro early Wednesday, the forint moved between 307.60 and 308.86, after a two-month high at 306.64 late Tuesday and a six-day low at 310.75 early Tuesday.
The Hungarian currency lingered in minor losses against the euro which resumed falling versus the dollar.
The forint traded in a relatively narrow range, clutching its new level below 310 to the euro rarely seen for months, to which it strengthened on Tuesday after the National Bank of Hungary (MNB) cut its base rate more than expected to a new record low, but the bankʼs head announced an end to the latest five-month easing cycle with a "hold" guidance "for a long, very long time to come", based on the assumption of loose monetary conditions to continue in the US for a long period of time.
But with the rate cut stop now history, the forint apparently could not find further direction. While the dayʼs flow of funds out of battered shares and into government bonds, including Hungarian sovereigns, throughout Europe underpinned it, the resumption of dollar pressure and local figures on steeply rising general government deficit capped the upside.
The forint traded at 282.95 to the dollar, down from 281.56 in final quotes on Tuesday. On Wednesday, it moved between 280.89 and 283.15, after a one-week high at 280.62 late Tuesday and an eleven-day low at 287.19 early Tuesday.
It was quoted at 294.09 to the Swiss franc, down from 293.84 late Tuesday. Its range on Wednesday was 293.22, a two-month high early in the morning, to 294.77. Since its crash to an all-time low at 378.49 on January 15 when the Swiss central bank scrapped its cap of 1.20 to the euro, it reached the highest at 281.07 on February 26.
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