Forint corrects up with euro
The forint was trading at 313.68 to the euro late Monday on the interbank forex market, up from final quotes at 314.78 on Friday and 314.46 on Sunday. At 314.47 to the euro early Monday, the forint moved between 313.31 and 315.32, after a more than five-week low at 315.80 late Friday. Over the last weak the forint lost 1.30% versus the euro, after a gain of 0.41% in the week before.
Apart from a short-lived blip right after Moodyʼs raised the outlook on Hungaryʼs junk rating to positive from stable late Friday evening, the Hungarian currency did not profit much of the rating agencyʼs move. On Monday, it convalesced less versus the euro and more against the dollar rather on the common currencyʼs limited correction from Fridayʼs plunge that followed better-than-expected US payroll and hourly wage growth data.
Together with the euro, the forint is subdued on the growing certainty of a US base rate hike in December in the wake of Fridayʼs payroll figures.
On the domestic turf, the forint is also down from previous levels after Hungaryʼs central bank announced new lending incentives last week, and indicated a resulting currency weakening would not be a worry.
A second government auction since last Monday of eight-week liquidity Treasury bills went better than a week ago when the government was forced to cut back its offer on low demand. On Monday demand grew, and the government sold the offered amount, but the average yield still increased.
The forint traded at 291.39 to the dollar, up from final quotes at 293.06 on Friday and 293.08 on Sunday. On Monday, it moved between 291.39 and 293.26,after a more than fifteen-year low at 294.40 Friday intraday.
It was quoted at 290.92 to the Swiss franc, up from 291.99 late Friday and 291.30 late Sunday. Its range on Monday was 290.53 to 292.18, after a more than tow-month low at 292.71 Friday intraday. Since its crash to an all-time low at 378.49 to the franc 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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