After multi-week lows Wednesday evening and Thursday morning in the wake of the Fed’s guidance that unsettled investors about its rate policy next year, the Hungarian currency firmed as Thursday’s auction of longer-term sovereign paper saw strong demand, and the offer was raised.
At the Government Debt Management Agency’s (ÁKK) early repurchase auction on Wednesday, both demand and the volume repurchased almost tripled from two weeks earlier, and was over usual levels. Thursday’s auction results suggest investors ploughed back the money, analysts say.
For the past two weeks, investors almost shunned auctions for short-term Hungarian debt. Hungary plans no foreign currency bond issuance in 2015, because there will not be any major foreign currency debt maturities that would need coverage from new issuance “if demand remains ample in the forint government bond market,” the deputy head of ÁKK also said on Thursday.
The forint traded at 244.22 to the dollar, up from 245.03 late Wednesday. On Thursday, it moved between 244.05 and 246.76, a more than three-week low. It was quoted at 255.72 to the Swiss franc, up from 256.67 late Wednesday. Its range on Thursday was 255.52 to 257.03.
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