Forint mixed on interbank market
The forint was trading at 309.27 to the euro late Thursday on the interbank forex market, a hair up from final quotes at 309.30 on Wednesday. At 309.52 to the euro early Thursday, the forint moved between 307.33, an eight-day high, and 309.74, after a two-week low at 312.66 Monday morning.
The Hungarian currency hugged small gains versus the euro for a fifth straight day, and briefly hit a three-month high in Swiss francs, while it continued to erode against the dollar in line with the euro which lost 0.56% by late Thursday in dollar terms compared to last quotes on Wednesday.
The Fedʼs statement Wednesday evening was a tad more optimistic about the prospects of the U.S. economy than in June, but its guidance moved market expectations for its rate hike neither closer nor further away from the well-anchored September to December range with a tilt to September.
Emerging markets have been favored by investors looking for yield but their edge could erode if the Fed raises its policy rate this year, an eventuality that continues to seem certain.
At a regular auction on Thursday, Hungaryʼs government cut sales of a five-year floating-rate bond on low demand, and sold discount twelve-month Treasury bills with yields falling 4bps from the preceding auction, but rising 6bps compared to the secondary market benchmark which singularly fell on Thursday.
All other Hungarian sovereign yields increased on Thursday on the secondary market, while those on first-rated euro-zone government bonds fell.
The forint traded at 283.12 to the dollar, down from 281.54 in final quotes on Wednesday. On Thursday, it moved between 280.12 and 283.34, a four-day low, after a two-week high at 277.68 late Monday.
It was quoted at 292.12 to the Swiss franc, down from 290.83 late Wednesday. Its range on Thursday was 288.81, a three-month high, to 292.13, a four-day low. 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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