Forint down on interbank market
The forint was trading at 306.22 the euro late Monday on the interbank forex market, a hair down from 306.17 late Friday and 306.20 late Sunday. At 306.19 the euro early Monday, the forint moved between 305.71 and 306.47. It touched a one-month high at 304.92 on Friday.
Over the last week, the forint gained 0.93% in euro terms, after it eased 0.46% over the last week.
The level of 305 to the euro is a tough nut to crack even as the forint has been firming on investors finding the Hungarian government's 2015 economic forecasts realistic, Commerzbank said in a note on Monday.
It also noted that Hungary experienced a big capital outflow during the third quarter, about EUR 2.3 bln, mostly from maturing foreign-currency debt.
The forint was underpinned by strong third quarter general government net financing requirement data out on Monday, but Citigroup also said investor interest in central European fixed income has come to a halt lately as money is pulled out of the Hungarian forint. Forint outflows are reaching historical highs as the upcoming conversion of forex loans into forint debts has led to a new shake-up in forint positions, the bank said. In a note on Monday, Citigroup also said Hungary's deeper-than-expected October inflation was also a trigger for some investors selling Hungarian local-currency government bond long positions.
The ECB's president hinted on Monday at the possibility of buying government bonds. additional liquidity is a positive for emerging market assets in Europe, but this outlook just slowed the forint's slide in the afternoon.
The forint traded at 245.77 to the dollar, down from 244.47 late Friday and 244.54 late Sunday. On Monday, it moved between 243.47, a more than two-week high, and 246.04.
It was quoted at 254.89 to the Swiss franc, down from 254.51 late Friday and 254.85 late Sunday. Its range on Monday was 254.46 to 255.07, a four-day low. It reached a more than three-week high at 253.97 last Thursday.
ADVERTISEMENT
Regional Infrastructure for Energy Diversification Needed
Parliament Negates Mandatory Membership in MOK
Graphisoft Introduces Archicad Collaborate
Meet the Expat CEO of the Year Nominees
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.
