Forint reaches multi-year highs against major currencies as salaries continue to rise
The Hungarian forint has been strengthening steadily for several days, dipping below the 390 mark against the euro for the first time in quite a while. Against the US dollar, it has reached a three-and-a-half-year high, with exchange rates dropping below 330.
What’s behind the relative strength of the Hungarian currency? In short: a weakening dollar and stable interest rates. The key question is: how long can this last?
Meanwhile, average earnings in Hungary have seen a notable rise—though the median wage remains significantly lower.
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Forint holds near peak levels
By Tuesday morning, the forint’s exchange rate had changed little compared to Monday afternoon’s figures on international foreign exchange markets. As of 7 a.m. Tuesday, the euro was trading at 389.69 forints, slightly up from 389.33. The dollar stood at 330.93 forints, rising from 330.73, while the Swiss franc was at 416.90 forints, compared to 416.65.
Since early September, the Hungarian currency has strengthened by:
- 1.7% against the euro,
- 2.5% against the dollar,
- 1.7% against the Swiss franc.
Since the start of the year, it has gained:
- 5.3% against the euro,
- 16.7% against the dollar,
- 4.8% against the Swiss franc.
Below is a table of current early-afternoon exchange rates:
| Currency | HUF |
|---|---|
| EUR | 389.79 |
| USD | 330.62 |
| GBP | 450.54 |
| CHF | 417.34 |
| CNY | 46.46 |
How long can the forint remain strong?
Investors are factoring in a likely interest rate cut by the US Federal Reserve, while Hungary’s base rate remains unchanged. The dollar continues to lose ground against the euro, with the EUR/USD exchange rate now approaching 1.18, according to Tőzsdefórum.
Hungary’s benchmark interest rate was initially set high during a period of significant forint depreciation, in order to defend the currency. The peak came in August 2022 at 11.75%, but the rate has since fallen substantially to 6.5%. It has remained unchanged since September 2024, and the central bank—led by former Finance Minister Mihály Varga—reportedly has no plans for further cuts.
This stable and relatively high rate makes forint-denominated assets attractive to investors, especially as the US Federal Reserve’s rate hovers in the 4.25–4.5% range.
Click to browse our forint archive.
Credit rating agencies could pose a risk
The US Federal Reserve is due to announce its rate decision tomorrow, while the Hungarian National Bank is set to meet next Tuesday. Markets expect the latter to keep rates steady.
A potential risk lies in Hungary’s economic outlook. As the EU stagnates or grows only modestly, Hungary faces additional uncertainty ahead of next spring’s parliamentary elections and a likely round of pre-election spending. These factors could strain both the balance of payments and fiscal discipline.
Credit rating agency Standard & Poor’s is set to publish a review on 10 October. The firm has previously considered Hungary’s rating to be on the borderline between investment grade and speculative. A downgrade would deal a significant blow to the national currency.
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Average gross salary nears 700,000 forints—but median still much lower
In July, the gross average monthly wage for full-time employees reached 693,700 forints (EUR 1,779), with a net average of 479,500 forints (EUR 1,230). Compared to the same month last year:
- Gross wages rose 9.0%,
- Net wages 9.4%,
- Inflation-adjusted real wages increased by 4.9%, according to the Central Statistical Office (KSH).
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However, the median wage—which divides the workforce into two equal halves—offers a more accurate picture of income distribution. Half of workers earn above this level, half below. In July:
- The gross median wage was 570,000 forints (EUR 1,462),
- The net median was 399,000 forints (EUR 1,023),
- Up 9.6% and 10.7% respectively from a year earlier.
Real wages grew 4.9% as annual consumer inflation stood at 4.3%.
UPDATE: Tuesday late afternoon currency exchange rates
The forint traded at 389.77 to the euro around 5:30 in the evening on Tuesday, easing from 389.35 late Monday.The forint firmed to 329.21 from 330.86 against the dollar. It softened to 417.62 from 416.62 to the Swiss franc.
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