Forint loses out to euro as dollar help thins
The forint was trading at 312.67 to the euro late Thursday on the interbank forex market, down from 311.27 late night Wednesday. At 311.28 to the euro early Thursday, the forint moved between 310.17 and 312.76, after an almost two-week high at 310.02 Wednesday evening immediately after the Fedʼs statement, and a five-day low at 313.98 Monday intraday.
Initially helped by waning dollar pressure, the Hungarian currency moved in tandem with the euro for most of the day, starting to trail behind only late afternoon, when fresh US data on rising inflation and tightening labour market balanced a noncommittal statement of the Fed.
Nevertheless, the euro and emerging European fixed-income assets were still broadly supported on Thursday by Fed comments the previous evening pointing to a careful approach to US monetary policy, which could help preserve investor interest in the region.
Worries over Greece remained subdued.
Upside, however, was limited by analystsʼ forecasts that the National Bank of Hungary (MNB) is to continue easing next week, while expectations for a lull afterwards thinned, also on the Fedʼs statement.
The forint traded at 274.09 to the dollar, up from 274.55 late Wednesday. On Thursday, it moved between 272.08, a one-month high, and 274.77, after a one-week low at 280.05 Monday intraday.
It was quoted at 298.53 to the Swiss franc, down from 297.75 late Wednesday. Its range on Thursday was 296.80 to 299.33. 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.
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.