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Forint falls on interbank market

EU

The forint was trading at 300.23 to the euro late Wednesday on the interbank forex market, down from 296.66 late Tuesday. At 296.75 to the euro early Wednesday, the forint moved between 295.64 and 300.23, a nine-day low, after a new 15-month high at 295.28 Tuesday intraday.

With the euro broadly stable in dollar terms as the ECBʼs confirmation of its commitment to fully implement its QE was balanced by its prediction of good growth prospects in the euro area, the Hungarian currency retreated from previous peaks.

Thought to be overbought lately, the forint also felt pressure from the local front, including the suspension of some EU funds to Hungary on Wednesday by the European Commission on project selection concerns, and new uncertainties on how larger contributions expected from banks to the investors compensation fund following the collapse of several brokerages will impact lending and economic growth.

The forint traded at 283.14 to the dollar, down from 278.46 late Tuesday. On Wednesday, it moved between 278.27 and 283.27, a nearly four-week low, after a five-day high at 276.56 Tuesday intraday.

It was quoted at 290.74 to the Swiss franc, down from 286.34 late Tuesday. Its range on Wednesday was 286.14 to 290.74, a two-month low, after a four-day high at 284.84 Tuesday intraday. Since its crash to an all-time low at 378.49 on January 15 when the Swiss central bank scrapped its cap of 1.20 to the euro, it reached the highest at 281.07 on February 26.

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