The euro is stuck above 390 for the night
The forint was unable to significantly improve in late evening trading, so the euro was stuck above 390 on the interbank market. The dollar also remained persistently strong: the euro quote was stuck below 1.06, so the dollar/forint quotes remained close to 369.
Development of the EUR/HUF exchange rate
Development of the EUR/USD exchange rate
Development of the USD/HUF exchange rate
The forint was pulled back three times from Monday’s fall
From the fall during the day, the forint was pulled back three times against the euro, close to 392, i.e. compared to the forint’s low point reached on September 7, no new low was formed. On Monday, Prime Minister Viktor Orbán announced in his speech at the opening of the parliamentary season that, following the autumn debates in Brussels, it will be possible to free up EU funds and that this could alleviate this year’s budget deficit, but he also announced that the government will not fulfill many requests from Brussels to the EU budget and disbursements in Ukraine. Based on these, the picture did not clear up much in terms of this year’s deficit and the disbursement of funds, and in addition, the euro was still stuck above 390. Today, the euro fluctuates around 391, and due to the strength of the dollar, the exchange rate against it is around 369, i.e. the forint has fallen to a new six-month low. The boost given to the dollar and reaching its six-month peak against the euro was confirmed by the president of the ECB: no further interest rate hikes are expected in the euro zone.
The dollar gained strength
In the second half of the day, the dollar gained appreciably against the euro, the quotation already fell below the level of 1.06, which is almost half a percent lower than on Friday. This is not good news for the forint either, if the improvement of the US currency is sustained, it may point towards further weakening of the Hungarian currency.
Development of the EUR/USD exchange rate
The weakening of the forint has stopped
By the afternoon, the forint calmed down a bit, and the euro is now quoted at around 390.8, which is 0.3 percent higher than on Friday. On the other hand, it does not look good that meanwhile the Polish zloty is strengthening by 0.1 percent and the Czech koruna by 0.3 percent against the euro, which means that the forint is again clearly on separate paths in the region.
Development of the EUR/HUF exchange rate
It’s almost 392
By midday, the HUF weakened to 392 against the euro, the current exchange rate of 391.5 is half a percent higher than on Friday evening. Prime Minister Viktor Orbán’s speech may soon bring further movement in the exchange rate.
Development of the EUR/HUF exchange rate
The forint continues where it left off on Friday, with the euro already above 390
Information and application
On Monday morning, the forint weakened to 390.3 against the euro, which represented a 0.2 percent weakening of the forint compared to Friday evening. In the second half of last week, the exchange rate of the Hungarian currency already tilted noticeably, when the leaders of Hungarian economic policy took turns speaking at the itinerant meeting of economists. Worrying statements about the state of the budget clearly had a negative impact on the HUF. Prime Minister Viktor Orbán is expected to speak before the agenda at the parliament session today, and his words may also attract even more attention than usual. Against the dollar, we are above 367, while the British pound costs HUF 449.2.
Development of the EUR/HUF exchange rate
Among the forint’s competitors in the region, the Polish zloty started the week with minimal strengthening, while the Czech crown stagnated. In the emerging market, the Turkish lira weakened by 0.1 percent against the dollar, while the Russian ruble is stagnant for the time being.
So far, the euro hasn’t moved significantly against the dollar either, the quotation is around 1.0644. Neither the Japanese yen nor the British pound moved significantly on Monday morning.
Development of the EUR/USD exchange rate
Cover image source: Shutterstock
