Hungarian forint gains to 6-month high as inflation accelerates
The Hungarian forint gained to a six month high against the euro as inflation, the highest in the European Union, quickened to a two-year high in October.
The annual rate was 6.3%, the highest since October 2004, compared with 5.9% in September. The forint has gained 3% in the past six months as Hungary's inflation rate has almost tripled, exerting pressure on the central bank to raise rates for a sixth time since June. “The inflation figures came out higher,” said Patrick Bengzon, an emerging markets strategist at Jyske Bank A/S in Silkeborg. “As the market is in the buying mood, the Hungarian forint will move higher.” The forint advanced to 259 per euro at 9:54 a.m. in Budapest, from 259.70 late yesterday. The currency will probably reach 256 by the end of the week, Bengzon said. Hungary's central bank, which last month lifted the benchmark interest rate to 8%, the highest level in the EU, may increase borrowing costs by another quarter point this month, according to four out of nine economists in a Bloomberg News survey. Five economists expect no change in rates. (Bloomberg)
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.