Forint firms on dismal US inflation data
The forint was trading at 311.61 to the euro late Wednesday on the interbank forex market, up from final quotes at 312.27 Tuesday. At 312.29 to the euro early Wednesday, the forint moved between 311.22, a more than three-week high, and 312.40, after a two-week low at 316.47 late last Thursday.
While rising yields of long-term Hungarian sovereigns lagged galloping German Bund yields on the secondary market in a race to beat US Treasuries ahead a possible US rate hike, the Hungarian currency changed direction late afternoon and won against the dollar when US Treasury yields turned south after data on an unexpected fall in US consumer prices in August lengthened further the odds of a the US tightening to materialize on Thursday.
The dollar fell against the euro as well, but the common currencyʼs gains remained limited after a vice president of the European Central Bank (ECB) re-confirmed the possibility of faster money printing by the ECB, so the forint accelerated its advance versus the euro.
But it fell against the Swiss franc which shot up against both the dollar and the euro.
The forint traded at 275.80 to the dollar, up from 277.17 in final quotes on Tuesday. On Wednesday, it moved between 275.29 and 278.02, after a more than three-week high at 275.13 late Monday.
It was quoted at 284.81 to the Swiss franc, down from 284.41 late Tuesday. Its range on Wednesday was 283.97 to 285.56, after a more than five-month high at 283.57 late Tuesday. 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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