No stopping: Hungarian forint at a new low

forint exchange rate money
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The Hungarian forint ended Thursday’s session with a significant weakening against the euro. Friday did not start well either: we soon saw another multi-week low for the forint.

Yesterday, we wrote about the inevitable weakening of the Hungarian currency. Just like clockwork, the forint started weakening not long after we published our article. There has been no stopping ever since then: at the time of writing of this article, the EUR/HUF exchange rate stands at 378.46.

This means that the forint is almost one percent weaker compared to last night alone. According to Portfolio, there are several reasons for this:

  • First of all, the dollar strengthened yesterday as expectations of a Fed interest rate hike strengthened again.
  • The Hungarian currency was supported by the 370 level. It was unable to fall significantly below it.
  • Some investors may close their positions out of caution ahead of Tuesday’s interest rate decision.

When the EUR/HUF exchange rate reached 377.85, it was already clear that

we haven’t seen such a low for the Hungarian forint since 26 April.

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