Hungary's forint rose by most in week since 2003 on rate views

Analysis

The forint reached a four-month high as investors buy the currency to benefit from high yielding Hungarian assets, such as bonds. The central bank will lift its deposit rate to 8.25% at its October 24 meeting, a Bloomberg survey of economists shows. The bank raised its rate last month to check inflation, which quickened to a two-year peak in September. „The forint's appreciation was very, very rapid,” said Tania Kotsos, an emerging-markets strategist at RBC Capital Markets in London. „The gains were triggered by the inflation numbers.” Against the euro, the forint gained 2.3% this week and traded at 265.31 late on Friday in Budapest, from 271.58 on October 6. The currency may gain as much as to 262 per euro in one month, Kotsos said. „We expect accelerating inflation throughout the fall months because of increasing natural gas and electricity prices and the raised value-added tax rate,” Ecostat, the research arm of country statistics office, said on October 12. Consumer price index reached 5.9% last month, compared with 5.4% expected by the analysts. (Bloomberg)

ADVERTISEMENT

531 new coronavirus cases registered in Hungary Figures

531 new coronavirus cases registered in Hungary

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.