Forint falls on interbank market

Analysis

The forint was trading at 301.25 to the euro late Wednesday on the interbank forex market, down from 298.85 late Tuesday. At 298.82 to the euro early Wednesday, the forint moved between 298.11 and 302.04, a five-day low after a six-day high at 296.82 Tuesday intraday.

In overdue profit taking the Hungarian currency, in line with regional peers, retreated from highs of the last few weeks, revisited on Tuesday, in a belated move in view of the local central banksʼ mostly continuing easing bias.


The National Bank of Hungary (MNB) cut its base rate on Tuesday and its statement showed that more were to be expected.


With the euro-dollar rate almost unchanged from Tuesday, the dollar exerted its pressure on the forint unhindered, except for the Swiss franc which fell against the euro, too.


Meanwhile, uncertainty about the future of Greece in the euro zone also weighed on riskier assets.


The forint traded at 280.89 to the dollar, down from 278.27 late Tuesday. On Wednesday, it moved between 276.95 and 281.68, a six-day low, after a one-week high at 276.84 Tuesday intraday.

It was quoted at 290.35 to the Swiss franc, up from 291.43 late Tuesday. Its range on Wednesday was 289.20, a one-week high, to 294.00. 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.

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