Forint weak on interbank market
The forint was trading at 315.99 to the euro late Friday on the interbank forex market, down from final quotes at 314.51 on Thursday. Also at 314.51 to the euro early Friday, the forint moved between 313.92 and 316.20, after a four-day low at 316.60 late Thursday, and a five-day high at 312.67 late Wednesday, following a one-week low at 316.96 early on Monday.
Over the week, the forint was down 0.13% to the euro, after a gain of 0.35% over last year.
The Hungarian currency resumed its weakening path, losing less against the euro and more against the dollar as global share markets recovered after Thursdayʼs whirlpool, and funds flowed back from gold into dollar. In the process, the euro shed nearly a sixth of its gains in the preceding two days against the dollar, and the forint lost half of its Thursday gain in dollar terms.
Regular government paper auctions with steeply rising yields weighed on the forint over the whole week, with more non-conventional easing by the National Bank of Hungary (MNB) looming.
On Friday, two official figures also raised question marks. November trade data showed surplus fell from a year ago, and MNB data attested to international reserves thinning further to EUR 30.3 bln, a six-and-half-year low, in December. MNB communicated the drop as a healthy process, but investors apparently take it as a sign of diminishing collateral.
The forint traded at 289.89 to the dollar, down from final quotes at 287.85 on Thursday. On Friday, it moved between 287.82 and 291.65, after six-day high at 287.75 late on Thursday, and a nearly five-week low at 293.94 late on Monday. On November 27, it fell to a third more than fifteen-year low within a month at 295.76.
The forint was quoted at 291.53 to the Swiss franc, down from 289.63 late Thursday. Its range on Friday was 289.16 to 291.53, a five-day low, after an eight-day high at 288.15 Thursday intraday. Since its crash to an all-time low at 378.49 to the franc on January 15, 2015, when the Swiss central bank scrapped its cap of 1.20 to the euro, it reached the highest at 281.07 on February 26, 2015.
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.