Hungarian forint on a roll: gaining strength against global currencies

Hungary’s forint gained fresh momentum on Monday, strengthening against major global and regional currencies and approaching recent highs, according to market updates and analyst commentary.

Forint is continuing its good streak

The forint began the week on a strong footing, climbing below the 378-per-euro level early in the morning. Analysts at Erste noted that the Hungarian currency also pushed toward a two-year high against the Polish zloty, underlining the breadth of the rally.

By the afternoon, the upward trend remained intact, writes VG.hu. Shortly before 3 PM, the euro was trading near HUF 377.4, while the US dollar slipped below HUF 318.5 at times during the day. Overall, the forint appreciated by roughly half a percent against the euro and by about 0.3 percent against the dollar.

Its performance was even more striking against some other currencies. The Hungarian unit strengthened by more than half a percent versus both the Swiss franc and the Polish zloty, highlighting solid investor sentiment toward the regional currency.

Limited domestic data, focus on central bank

Market participants are not expecting significant domestic economic releases this week that could materially influence exchange rates. Instead, attention is already turning to next Tuesday’s interest rate decision by the Magyar Nemzeti Bank.

This meeting could mark a turning point, as analysts widely anticipate the first rate cut in nearly a year and a half. Forecasts suggest a reduction of 25 basis points, which would bring the base rate down to around 6.25 percent.

According to Equilor Befektetési Zrt., the euro’s drop below HUF 378.5 now forms a short-term resistance level, while the next potential support zone lies between HUF 375 and HUF 376.

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Political signals fail to move markets

Separately, political developments have so far had little visible impact on the currency. Recent remarks by Marco Rubio emphasised the importance of the relationship between Donald Trump and Hungarian Prime Minister Orbán Viktor, including suggestions that Hungary could expect support in the event of financial difficulties.

Despite these positive signals, the lack of concrete details appears to have limited any market reaction. During the morning session, the forint traded in a narrow band between roughly HUF 318 and HUF 318.5 per dollar before stabilising.

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Nearing recent highs

After some early hesitation, the Hungarian currency resumed strengthening against both the euro and the dollar. By midday, it was trading near HUF 377.1 per euro, putting it within reach of last week’s peak of around HUF 376.4.

Against the dollar, the forint also strengthened again, briefly dipping below HUF 318.1. However, analysts note that it remains further from a decisive technical breakout than it appeared earlier in the trading session.