The forint remained stable in the evening
During the evening trading, the forint stayed close to the morning level at around 375.5 against the euro. Thus, compared to last night, there was only a minimal weakening of the forint.
In the meantime, the dollar gained strength again in the evening trading, the quotations against the euro fell to 1.08, so according to the signs, the currency pair closes below the 100-day moving average (1.0810), which points to further strengthening of the dollar next week .
Due to the strengthening of the dollar in the evening, the forint weakened a little against it, the quotations are around 347.8 during the evening interbank trading.
The forint was withdrawn until around 375 in the morning
The forint was also able to strengthen in the evening trading, partly helped by the weakening of the dollar against the euro (the exchange rate jumped to 1.0820), so the Hungarian currency was essentially able to completely offset the drop during the day. The change against the dollar was even more spectacular, as during the day the exchange rate was around 351.5, while in the evening the exchange rate returned to 347.
It stabilized around 376
There was no big movement in the forint exchange rate in the afternoon, the quotation moved around 376 against the euro. Now HUF 376 costs 20 fils to one euro, which is a 0.4% decrease compared to yesterday. The dollar did not weaken further against the euro, it strengthened below 1.08, and is now just a hair below this level.
Development of the EUR/HUF exchange rate
The HUF is coming back
The forint has already transferred 376 against the euro, now you have to pay 375 forints and 70 fils for one euro. That’s still down 0.2% from yesterday. The dollar began to weaken, passing 1.08 against the euro, which means a 0.3% weakening.
Development of the EUR/HUF exchange rate
He came back as far as 376
The forint recovered from the low point to 376, but compared to yesterday it is still 0.3% weaker.
Development of the EUR/HUF exchange rate
The Varga-Matolcsy meeting brought some reassurance
The HUF corrected back a bit after the announcement that Finance Minister Mihály Varga and Central Bank Governor György Matolcsy had met again. The news suggests that the previous tension between the economic policy leaders is easing, but on the other hand, the government has once again called for an interest rate cut, which has the opposite effect. The euro is now at 377.35, which is still a HUF weakening of 0.65% compared to yesterday.
Development of the EUR/HUF exchange rate
378 also fell
The quotation of the euro is already above 378, which means a weakening of almost one percent in terms of the Hungarian currency compared to just last night. There are several reasons for this:
- The dollar started to gain strength yesterday as expectations of a Fed rate hike rose again.
- The 370 level was a strong support for the exchange rate, the forint could not fall significantly below.
- Some investors may close their positions out of caution ahead of Tuesday’s interest rate decision.
Development of the EUR/HUF exchange rate
Another multi-week low is here
The forint is already at 377.85, which means its weakening continues, which is 0.8% higher than the euro exchange rate last night. But what’s even more important is that
SINCE APRIL 26, THE HUNGARIAN CURRENCY HAS NOT BEEN WEAKER.
Development of the EUR/HUF exchange rate
The forint continues to fall
The weakening of the forint is not abating, the quotation is already at 377, which represents a 0.6% drop compared to yesterday in terms of the Hungarian currency. According to the signs, we can talk about not only a temporary fluctuation, but a more permanent turnaround in the case of the forint.
Development of the EUR/HUF exchange rate
The forint is not working today either
On Friday morning, the forint quickly started to weaken again against the euro, the exchange rate of 376.3 is already 0.4% higher than on Thursday evening. The dollar is worth 349, and the British pound costs HUF 433.2. In the region, the Polish zloty and the Czech koruna are weakening by 0.1 percent.
Development of the EUR/HUF exchange rate
The forint received a serious blow – can it recover?
On Friday morning, the forint starts the day at around 375 against the euro, which means a minimal movement compared to last night. On Thursday, the forint suffered a significant weakening, as the quotation was still around 370 at the beginning of the day, and then it was at 377 in the afternoon. Behind the fall of the HUF were on the one hand the strong strengthening of the dollar and, on the other hand, expectations regarding next Tuesday’s interest rate decision. We could already observe last year that, as a so-called high-beta currency, the forint closely follows the movement of the dollar in the opposite direction. In other words, when the US currency strengthens, the HUF typically weakens and vice versa. The other factor is that the Monetary Council of the MNB will hold an interest rate decision meeting on Tuesday, which may even decide to reduce the benchmark interest rate to 18 percent. If this happens, of course, the Hungarian interest rate will still be by far the highest in the region, however, a few days before such an important decision, investors may be more cautious, some may think that they would prefer to close their positions now, and then perhaps re-enter the market after the decision. depending on market reaction. Against the dollar, we are at 348.45, while the British pound costs HUF 432.
Development of the EUR/HUF exchange rate
Among the direct competitors of the forint, the Polish zloty and the Czech koruna started the day with a minimal, 0.1 percent weakening against the euro. In the emerging market, the Turkish lira started the day with minimal weakness and the Russian ruble barely appreciated against the dollar.
We have already mentioned the strengthening of the dollar, which is clearly bad news for the HUF. Yesterday, the American currency moved from levels above 1.08 against the euro, and now it is trading at around 1.0763, which even compared to Thursday evening means a further strengthening of the dollar by 0.1 percent. Meanwhile, the Japanese yen strengthened by 0.2 percent against the American currency, while the British pound opened the day with a minimal weakening.
Development of the EUR/USD exchange rate
Cover image: Shutterstock
