Forint fairly stable on interbank market
The forint was trading at 309.14 to the euro late Wednesday on the interbank forex market, a hair up from 309.29 late Tuesday. At 308.93 to the euro early Wednesday, the forint moved between 308.16 and 309.41, after a more than three-month low at 309.90 Tuesday intraday.
The dollar was again strong after Tuesdayʼs upbeat US data on business spending plans, consumer confidence, new home sales and house prices, but the pressure from it eased somewhat as other data showed US services sector expansion slowed for a third straight month in May, and mortgage applications fell last week due to rising market interest rates.
Thus, the euro licked its wounds from the previous day, and as it fared stable versus the dollar after an almost 1% fall on Tuesday, the Hungarian currency could eke out a little gain later in the day.
On Tuesday, the forint lost more than 0.5% versus the euro and more that 1% against the dollar, also in the wake of a third consecutive rate cut by the National Bank of Hungary (MNB) to a new record low. That snapped a short firming period since Friday, when Fitch Ratings upgraded Hungaryʼs junk status to "positive" from "stable" on Friday.
MNB also flagged more rate cuts to come, but analysts say it could pause in June if Greek woes worsen.
The forint traded at 284.42 to the dollar, down from 283.76 late Tuesday. On Wednesday, it moved between 282.24 and 285.89, a more than tow-month low, after a nearly three-month high at 267.21 only twelve days ago.
It was quoted at 298.93 to the Swiss franc, down from 298.07 late Tuesday. Its range on Wednesday was 297.75 to 299.66, an almost three-month low. 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.
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