Forint eases on interbank market

History

The forint was trading at 303.69 to the euro late Thursday on the interbank forex market, slightly down from 303.17 late Wednesday. At 303.18 to the euro early Thursday, the forint moved between 301.23, a 14-month high, and 304.48.

After an initial shot up in the wake of the Fedʼs statement Wednesday evening that scaled back interest rate hikes on the horizon in the United States, the Hungarian forint corrected down while the US dollar corrected up against major currencies on convincing employment data.

Thursdayʼs regular auction of longer-term Hungarian sovereigns went with yields falling steeply from secondary market benchmarks but broadly in line with the previous auction, and low demand, except for the 10-year tenor, also reflected volatility.

The forint is also pressured by expectations for a rate cut from the National Bank of Hungary (MNB) as early as next week. In view of the Fedʼs probable postponing stance, analysts now see a deeper cut next Tuesday in Hungary than previously thought.

Hungaryʼs rate setters have learnt the lesson of their Polish counterparts and they wonʼt declare an early end of the easing cycle. Instead, theyʼll leave their stance open and cut gradually. This should offer protection against the forint firming versus the euro, the Royal Bank of Scotland said in a note on Wednesday.

The forint traded at 285.51 to the dollar, down from 279.00 in final trades on Wednesday. On Thursday, it moved between 278.64 after a 13-day high at 275.47 Wednesday evening, and 286.07. It fell into a new 13-year trough at 292.39 last Friday intraday.

It was quoted at 287.64 to the Swiss franc, down from 285.13 late Wednesday. Its range on Thursday was 284.15 after a six-day high at 283.76 after-Fed on Wednesday, to 288.23, a four-day low. 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 Febuary 26.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.