Continuous weakening: Forint cannot be saved by EU funds news

On Wednesday morning, the forint started weakening against the euro again. The exchange rate is once again hovering above 390. Despite encouraging news on EU funds and attempts to strengthen on Tuesday, there was no significant momentum.

The forint was trading around 391.15 against the euro on Wednesday morning. This meant a 0.3 percent weakening for the Hungarian currency. Yesterday, the forint tried to strengthen, with the exchange rate sinking to around 386: however, by the evening, the it was weakening again, Portfolio reports. (Read about the good news on EU funds HERE.)

The market is still primarily concerned about the rise in US bond yields, with the overseas 10-year already at 4.87%. Seeing the trend, the only question is when it will reach the critical 5% level.

The forint is now trading at around 373.5 against the dollar, while the pound is at 450.3.

Among the region’s competitors, the Polish zloty and the Czech koruna also started the day with minimal losses of 0.1 percent. In emerging markets, the Turkish lira weakened by half a percent against the dollar and the Russian rouble by 0.3 percent.

The strengthening of the US currency has not been good for the forint and other emerging market assets, Portfolio writes. Yesterday, the dollar climbed back below 1.05 against the euro and is now trading near 1.045, which represents a further 0.1% strengthening of the US currency.

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2 Comments

Government in Crisis Mode: says:

04/10/2023 at 11:26

You don’t need to be a Rhodes Scholar to know this is FACT.
The deepness of the incineration of the Hungarian economy, taken to this ugly place, by the Orban Government, if European Union funding is provided, and it REMAINS a Big if, it will not have impact on our Economy, to STABILIZE its on-going FALL.
Mihaly Varga – Finance Minister of the Orban Government, we AGAIN wait for a hopefully CANDOUR comment, that gives US again your “spiel” or “jargon” – your opinion.
Readers, who under the microscope EXAMINE communication, decisions being made, past and present, arising out of the Minister for Finance – Mihaly Varga – the direction continues, being the wrongful direction, through you, your Financial & Economic decision making, that continues to send our Economy, into a deepening BLACKENED hole.
Are you still Minister working overtime in consideration of Hungary going Euro ?
If Hungary, under the Mihaly Varga “grand plan” to save – attempt to stabilize the Hungarian economy, by us going Euro, it would be cataclysmic for the FUTURE of Hungary.
Norbert says:

04/10/2023 at 14:58

Anybody else found that invoices sent abroad in HUF get paid later?

I have switched to EUR, tired of customers holding out, waiting for the currency to dip…