Hungary's forint declines on street protests

Analysis

The Hungary's forint fell against the euro, ending a three-day winning streak, after police in riot gear sealed off parliament and used tear gas against protesters.

Rioters cause damage to economy. Forint fell against euro again after some rioters turned against police forces during ceremonies and commemorations of Hungary’s uprising 50th anniversary. Streets were closed off in Budapest as authorities sought to bring to an end weeks of demonstrations that last month turned violent. The forint also led East European currencies lower after a technical chart some traders use to predict currency movements suggested its gain to a four-month high last week was excessive. „The local political situation is still very uncertain,” said Lars Christensen, a senior strategist at Danske Bank S/A in Copenhagen. „The gains in the forint were clearly excessive.” Against the euro, the forint declined 0.20% to 263.20 per euro as of 4:00 p.m. in Budapest. It strengthened as far as 261.47 on October 20, the highest since June 2. The currency may fall to 270 per euro this week, Christensen said. The forint's 14-day relative strength index against the euro was 70.3 today after rising to 73.2 on October 20. A level above 70 or below 30 signals a reversal in the direction of the currency. Today the dollar rose against all 16 of the most-traded currencies Bloomberg tracks on speculation the Federal Reserve will resume interest-rate increases, helping to buoy the yields investors can get from US assets. „Sentiment towards emerging markets has deteriorated,” Christensen said. (Bloomberg)

ADVERTISEMENT

Czech economic confidence weakens in July Analysis

Czech economic confidence weakens in July

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.