Outlook for some more easing from the National Bank of Hungary (MNB) next week left the Hungarian currency unprotected against the euro that quickly gathered strength versus the dollar partly on short-covering after ECBʼs easing last week came in smaller than expected, and partly on perception that the US Fed is preparing for a “dovish hike” next week with a milder tightening than previously thought.
This equation left the forint falling steeply versus the euro, its loss reaching 1pc within two days, and helped it stay firm against the dollar. The euro gained about as much versus the dollar on Wednesday as the forint weakened against the euro.
The forint traded at 287.94 to the dollar, a hair up from final quotes at 287.99 on Tuesday. On Wednesday, it moved between 286.85 and 288.60, after a five-day low at 289.53 early Tuesday, and a one-month high at 284.75 late last Thursday. On November 27, it fell to a third more than fifteen-year low within a month at 295.76.
It was quoted at 291.82 to the Swiss franc, down from 290.04 late Tuesday. Its range on Wednesday was 289.41 to 291.95, a one-month low, after a four-day high at 286.45 Monday intraday. Since its crash to an all-time low at 378.49 to the franc 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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