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Forint firms slightly on interbank market

The forint firmed a tad on Thursday morning's interbank market, trading at 271.97 against the euro at 10:30 A.M., compared to a Wednesday-afternoon rate of 272.15.

Dealers remark that the Federal Reserve's announcement on Wednesday evening, Central European Time, that it would purchase USD 600 billion in T-bills to stimulate the US economy had only transitory impact on forint rates.

Dealers add that the forint has firmed in unison with central and eastern European peers such as the Czech koruna and the zloty on Thursday.

Dealers say that global market-sentiment should continue to exercise the primary impact on forint rates, noting that the affirmation of Standard and Poor's on Wednesday of Hungary's “BBB-/A-3” sovereign credit ratings, maintaining a negative outlook, did not provide the forint with a boost.

Dealers predict that the forint is likely to continue firming over coming days, though is unlikely to strengthen past the 270 mark against the euro.

The forint traded at 191.07 to the dollar on Thursday morning, compared to a Wednesday-afternoon rate of 194.07. (MTI Econews)