The forint had a bad start to the week, it was significantly weaker against the euro. The quotation also reached 402, and then recovered somewhat. Today, HUF 401 costs 40 fils to the euro, so the 400 level is still far away.
Yesterday, international movements caused the HUF to weaken. The dollar reached a new peak of early August against the euro, down to 1.082. The strengthening dollar puts pressure on the emerging currencies, in addition to the forint, the Polish zloty also weakened, but not as much as the Hungarian currency.
The forint crossed the 370 level against the dollar and
weakened to a level not seen since the end of June.
This morning, the dollar costs HUF 370 and HUF 90, but we see minimal forint strengthening the big question today is still what the mood of international investors will be. There will hardly be any change in the basic expectations (high dollar interest rates, Donakd Trump’s victory), but large movements may be followed by corrections, so there is not necessarily a weakening of the forint today.
All the more so since the Hungarian National Bank is holding its interest rate meeting today. The central bank is apparently bothered by the fact that the forint is weak, as it may endanger the inflation target. Barnabás Virág, vice-president responsible for monetary policy, said at the Portfolio conference last week that interest rates will remain unchanged for some time. This held the forint for a few days, but it could not go against the international mood for a long time. The decision of the central bank can therefore be almost ignored, but the message must be paid attention to.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
