Forint stable versus euro, gains in dollar

The euro corrected up against the dollar on Tuesday as the market has already priced back a summer Fed tightening into the cross since early last week, and Tuesdayʼs upbeat US retail and producer price data only confirmed Fed expectations.

With the euro gaining against the dollar also on strong euro zone industrial data, and ECB statistics on improving lending environment in the euro area, the Hungarian currency hugged its recent gains versus the euro and, with its help, recuperated some of its recent losses against the dollar.

The forint was also helped by fresh Hungarian current account figures which showed its surplus grew in February on strong exports, and a regular auction of three-month Hungarian Treasuries with falling yield.

The forint traded at 278.01 to the dollar, up from 280.91 late Monday. On Tuesday, it moved between 276.84, a five-day high, and 281.71, after a three-week low on Tuesday at 282.95.

It was quoted at 286.45 to the Swiss franc, up from 287.18 late Monday. Its range on Tuesday was 285.11, a four-day high, to 287.88, a ten-day low in the morning. Since its crash to an all-time low at 378.49 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.