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Forint recovers some loss vs Swiss franc

The forint traded at 261.05 to the Swiss franc a little before 4 p.m. on Tuesday, weakening from 252.52 late Monday, but firming from a new historical low of 264.24 in the morning.

The forint softened as the effect of Standard and Poor's downgrade of the United States' sovereign rating spiraled.

Much of Hungarian banks' outstanding retail lending stock is denominated in Swiss francs.

Answering a question after a meeting of rate-setters on July 26, National Bank of Hungary governor András Simor said stress tests the central bank conducted last October showed the country's banking system was resilient enough to withstand a strengthening of the Swiss franc to HUF 245 at the end of 2011 and to HUF 257 at the end of 2012.

The forint traded at 275.09 to the euro late Tuesday, weakening from 273.93 on Monday.

The forint firmed to 192.73 from 193.22 against the dollar.