After several, failed, attempts in the last few days, the Hungarian currency was on its way to close above the key 305 to the euro level. Analysts reckon that the breach of this resistance point could lead to levels of 302-303 soon.
Another fall of short-term yields at Thursday’s auction also helped, though oversubscription was low, but the government sold only the offered amount.
Investors still price in the general expectation that Hungary’s government is interested in a strong forint by end-2014 to decrease the debt-to-GDP ratio.
But they also expect the artificial strength of the forint to diminish in the first quarter of next year once households are not affected by forex risk any more.
And some analysts, including Morgan Stanley’s, see room for monetary policy easing in Hungary. In the short run though, rate expectations also underpin the forint as they fuel a return of demand for short-term Hungarian sovereigns.
The forint traded at 242.66 to the dollar, up from 242.97 late Wednesday. On Thursday, it moved between 242.23 and 243.79. It reached an almost one-month high at 242.00 on Wednesday. It was quoted at 253.43 to the Swiss franc, up from 253.88 late Wednesday. Its range on Thursday was 253.30 to 254.18. It hit a close to one-month high at 253.16 on Wednesday.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
