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Forint weakens to all-time low against euro

The forint weakened to an all-time record 319.46 to the euro at around 9:45 a.m. on Wednesday.

The forint subsequently firmed back under 319 to the euro, trading at 318.86 to the single European currency at 10:00 a.m., compared to a rate of 315.45 at 4:00 p.m. on Tuesday.

Dealers attribute the forint’s weakening to uncertainty with regard to Hungary’s possible financial-assistance agreement with the International Monetary Fund and market pressure to amend Hungary’s new central-bank law. Dealers add that the forint is likely to remain under pressure until news regarding a continuation of talks between Hungary and the IMF.

The forint also weakened to the Swiss franc and the US dollar on Wednesday morning, trading at 261.57 to the CHF and a three-year weakest 244.69 to the USD, compared to Tuesday-afternoon rates of 258.80 and 241.77, respectively.