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Forint weakens as mood sours on global markets

  The forint traded at 303.20 to the euro late Friday, weakening from 300.49 on Thursday as the mood on global markets worsened.

The forint traded at 301.49 to the euro in the morning, but weakened as far as 305.02 by mid-afternoon before correcting to around 303. In addition to global market sentiment, the forint’s rate was probably affected by uncertainty over Hungary’s next government as the search for a person to replace the prime minister continues, traders said.

Turnover was low, and even small deals were enough to affect the forint’s rates, they added. The forint traded at 228.32 to the US dollar late Friday, softening from 221.93 on Thursday and 222.25 in the morning.

On the secondary market for government securities, yields for three- and five-year bonds were around 12.50% and the ten-year yield was at 11.80%. Two days earlier, yields were 40-50bp lower. (MTI-Econews)