Forint eases on interbank market
The forint was trading at 307.46 to the euro late Tuesday on the interbank forex market, down from 306.20 late Monday. At 306.33 to the euro early Tuesday, the forint moved between 306.13 and 307.53, a four-day low.
After short peeks under 305 to the euro a couple of weeks ago, the Hungarian currency seems to be back to its range of 305-310, usual since early October, after it spent more than two months between 310-315 since late July.
The forint kept in a narrow range, as the euro's Tuesday fall in dollar terms pressured it, while it was also underpinned by what the euro's course suggested: hopes growing again in the afternoon for ECB's quantitative easing as crude oil prices resumed falling and euro zone October producer prices came in with a one-year record drop.
Waning expectations for further base rate cuts from the National Bank of Hungary also supported.
Meanwhile, bond prices still reflected the short-lived rise of crude prices late Monday and early Tuesday, which temporarily cooled expectations for ECB's benevolence. Benchmark Bund yields increased on the secondary market, but corresponding Hungarian 10-year sovereign yields rose less, which narrowed their risk premium, a negative for the forint.
The forint traded at 247.95 to the dollar, down from 245.55 late Monday. On Tuesday, it moved between 245.39 and 248.03, a three-week low. It was quoted at 255.29 to the Swiss franc, down from 254.53 late Monday. Its range on Tuesday was 254.32 to 255.39, a four-day low. It hit a six-day high on Monday at 254.18.
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