The Hungarian forint started today strong, and its strengthening continued later. The primary reason is the weakening of the USD.
According to portfolio.hu, in the afternoon, the Hungarian forint reached the 395.4 HUF/EUR currency exchange rate level, which is just 1.2 percent behind its Tuesday evening value. Meanwhile, the USD currently values HUF 373.
It was last September when the HUF/EUR exchange rate was this low.
The Hungarian National Bank did not change the one-day deposit rate, so it remained at 18 percent.
The Hungarian forint did not start the beginning of the year well. It weakened to 403-404/EUR on 2 January. But it seems there is still hope for the Hungarian national currency.
Interestingly, the forint is an outperforming currency in the Central European region. The Polish zloty and the Czech koruna did not move against the euro. In the emerging market, the Turkish lira is weakening against the dollar, while the Russian ruble strengthened by 0.7 percent.
According to the Világgazdaság, technical analysis shows the Hungarian national currency may reach the 390/EUR threshold. The news outlet wrote the forint was weakened by the German inflation data published on 2 January. However, since then, it has been strengthening again.
According to the experts of Raiffeisen, the international sentiment is positive, and the country’s energy supply has been stabilising. Therefore, the forint may reach 392-394/EUR level. OTP analysts believe the forint may strengthen even to 390/EUR. Világgazdaság highlighted that, on the market of the Hungarian state bonds, optimism is unchanged.
Source: portfolio.hu, Világgazdaság