Hungarian Forint Continues to Weaken


On Tuesday, the forint fell to a five-month low level against the euro, after the MNB’s Monetary Council cut the benchmark rate by 100 basis points.

The weakening was not significant, probably because Barnabás Virág, the vice-president of the central bank, said at the background discussion following the interest rate decision that it was a temporary acceleration, and the medium-term interest rate path did not change.

On Wednesday, however, the Hungarian currency continued to weaken.

According to the Portfolio article, the HUF easily passed the level of 392 against the euro, and then the quotation spiked up to 393.1. Within a day, this is already a 0.6 percent weakening. Against the dollar, the fall is even more serious, it already exceeds 0.8%. One dollar is worth 363 forints and 40 pennies, the article reads.


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