Hungarian forint hits four-year high against US dollar

The Hungarian forint strengthened to its strongest level against the US dollar in four years on Friday morning, briefly pushing the exchange rate below HUF 325 per dollar. This marked the first time the forint has reached this level since February 2022, underlining a broader trend of resilience in the Hungarian currency.

Hungarian forint is at its highest against the US dollar

While the forint showed mixed movements against major currencies during the week, its performance against the dollar clearly stood out. According to market data cited by MTI, the dollar slipped from around HUF 325.30 to approximately HUF 324.95 in early trading, placing the exchange rate at its lowest point in more than four years, writes Privátbankár. The Swiss franc also weakened slightly, trading near HUF 411.30.

Against the euro, the Hungarian currency was more stable. On Friday morning, the euro stood at HUF 381.94, only marginally higher than the previous evening. Earlier in the week, the euro briefly dipped to HUF 381.72, its strongest level against the forint since early December, before stabilising.

The reasons behind forint’s vitality

Several factors are behind the forint’s renewed strength, particularly against the US currency. Over the past year, the dollar has gradually lost ground on global markets, a trend many analysts expect to continue. Speculation surrounding future leadership at the US Federal Reserve has added to this outlook, with expectations that a more rate-cut-friendly Fed chair could further weaken the dollar in the coming months.