Forint stable on interbank market
The forint was trading at 306.29 to the euro late Monday on the interbank forex market, slightly up from 306.75 late Friday and 306.36 late Sunday. At 306.33 to the euro early Monday, the forint moved between 306.01 and 307.12, after falling to a more than two-week low at 308.23 on Friday.
The Hungarian currency was supported by fresh regional and local manufacturing surveys, which came in strong compared to euro zone figures, auguring for more ECB liquidity enhancement but diminishing pressure on regional central banks to cut further their base rates.
Hungarian bonds became overpriced lately and might be prone to a correction, Erste Group said on Monday. Central and Eastern European bonds have largely priced in a broadening of ECB asset purchases, but in Hungary domestic factors might have more impact on prices. A yield correction should be triggered by the conversion of forex mortgage loans next year which will boost banks' need for forint financing, which is likely to lead to lower demand on the bond market, Erste said.
A stronger euro in dollar terms also underpinned the forint.
The forint traded at 245.50 to the dollar, up from 246.34 late Friday and 246.31 late Sunday. On Monday, it moved between 244.94, a four-day high, and 246.96.
It was quoted at 254.62 to the Swiss franc, up from 254.81 late Friday, but down from 254.49 late Sunday. Its range on Monday was 254.39 to 255.31.
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.