According to a forecast by Amsterdam-based multinational banking and financial services company ING, the Hungarian forint is set to weaken further against euro, with an exchange rate above HUF 340 for a single euro incoming in Q1 2020, news site index.hu reports, based on information from business daily Világgazdaság.
ING says that exchange rates may even approach HUF 345 for a euro next year. The company expects the Hungarian currency to weaken against the U.S. dollar as well.
The report adds that the currencies of CEE countries generally perform well in comparison with developing countries, even in the face of slower Eurozone and regional growth, with the exception of forint.
Still, index.hu says that the weakness of forint seems to leave the National Bank of Hungary (MNB) unfazed, as the bank believes that a weak currency benefits the economy. ING believes that MNBʼs policies are unlikely to either stabilize or strengthen forint. Additionally, inflation is approaching 3%, which is some 2% higher than that of the Eurozone.
According to an analysis by portfolio.hu, investigating the performance of forint and 28 other, frequently used currencies, forint showed the fifth-largest weakening against both the euro and U.S. dollar. Last week, the value of forint reached a historic low against the euro, with the exchange rate climbing above 337. Forint also came close to an 18-year low against the U.S. dollar.