INTERBANK MARKET REPORT: Monday
The forint was trading at 311.82 to the euro late Monday on the interbank forex market, up from 312.59 late Friday and 312.18 late Sunday. Also at 312.18 to the euro early Monday, the forint moved between 311.73 and 313.03.
Last week, it fell 0.40% on the week in euro terms after rising 1.29% over the previous week.
The Hungarian currency continued to hover on the weak side of 310 to the euro on expectations that rising US interest rates will erode the appeal of emerging market debt, and the refunds and debt conversion to household clients might rock Hungary's financial system.
On Monday, the Hungarian Banking association asked the nation's president not to sign last week's law on rules of refunds to clients, but refer the legislation to the Constitutional Court instead.
However, the pledge of the central bank last week to mitigate the burden of refunds and debt conversion for financial institutions, and the unexpected chance of a forex sovereign issue still this year floated by Hungary's economy minister last week, were still putting some floor under the forint after multi-year lows two week ago.
Volatility, however, was illustrated on Monday with the forint falling briefly to another multi-year low in dollar terms.
The forint traded at 245.65 to the dollar, up from 246.44 late Friday and 246.31 late Sunday. On Monday, it moved between 245.30 and 246.93, a 28-month low.
It was quoted at 258.39 to the Swiss franc, up from 258.92 late Friday and 258.80 late Sunday. Its range on Monday was 258.36 to 259.35, a twelve-day low.
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