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Forint weakens sharply after gov't spokesman statement

The forint traded at 287.31 to the euro late Friday, weakening from 278.55 on Thursday after the government spokesman said a comment by a top Fidesz official likening Hungary to Greece was “no exaggeration”.

Fidesz vice president Janos Kosa on Thursday said Hungary has “a slim chance” to avoid fiscal and debt troubles similar to those of Greece. Government spokesman Péter Szijjártó reaffirmed the comparison.

The forint weakened past 289 to the euro during the day before recovering somewhat in the afternoon.

The forint traded at 238.48 to the dollar late Friday, softening from 227.20 on Thursday.

On the secondary market for government securities, benchmark yields rose 67bp to 83bp for terms over a year. (MTI – Econews)