ADVERTISEMENT

EUR/HUF exchange rate of 340 incoming, ING says

Deals

According to a forecast by Amsterdam-based multinational banking and financial services company ING, the Hungarian forint is set to weaken further against euro, with an exchange rate above HUF 340 for a single euro incoming in Q1 2020, news site index.hu reports, based on information from business daily Világgazdaság.

ING says that exchange rates may even approach HUF 345 for a euro next year. The company expects the Hungarian currency to weaken against the U.S. dollar as well. 

The report adds that the currencies of CEE countries generally perform well in comparison with developing countries, even in the face of slower Eurozone and regional growth, with the exception of forint. 

Still, index.hu says that the weakness of forint seems to leave the National Bank of Hungary (MNB) unfazed, as the bank believes that a weak currency benefits the economy. ING believes that MNBʼs policies are unlikely to either stabilize or strengthen forint. Additionally, inflation is approaching 3%, which is some 2% higher than that of the Eurozone.

According to an analysis by portfolio.hu, investigating the performance of forint and 28 other, frequently used currencies,  forint showed the fifth-largest weakening against both the euro and U.S. dollar. Last week, the value of forint reached a historic low against the euro, with the exchange rate climbing above 337. Forint also came close to an 18-year low against the U.S. dollar.

ADVERTISEMENT

Pressure increasing on CFOs - PwC survey Analysis

Pressure increasing on CFOs - PwC survey

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.