Forint eases further on interbank market
The forint was trading at 307.29 to the euro late Thursday on the interbank forex market, down from 306.94 late Wednesday. At 306.95 the euro early Thursday, the forint moved between 306.71 and 307.32, after hitting a two-week low at 307.56 on Wednesday. It touched a new close to six-month high at 303.63 on last Friday.
The slide of the Hungarian currency slowed as Hungary continued to benefit from low borrowing costs at a government bond auction for longer maturities on Thursday with dropping yields amid still good demand, while expectations of monetary easing are high in the region and the euro zone.
However, bid-cover ratio fell from the previous auction two weeks ago. Rising expectations of more monetary easing, and some business-unfriendly plans from the Hungarian government weigh on the forint, though, Raiffeisen said in a note on Thursday.
Still, the government would probably like to see a stronger currency going into year-end given the foreign debt position. Raiffeisen expects the forint slide some more, but reach strong resistance at 308 to the euro.
The forint traded at 246.26 to the dollar, down from 245.43 late Wednesday. On Thursday, it moved between 245.06 and 246.42. Last Friday it touched an almost one-month high at 241.95.
It was quoted at 255.70 to the Swiss franc, down from 255.36 late Wednesday. Its range on Thursday was 255.14 to 255.74, after reaching a two-week low also at 255.74 on Wednesday. It rose to a more than one-month high at 252.53 on Friday.
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