Long unseen: EUR/HUF rate falls below 400
On Wednesday morning, the Hungarian forint strengthened against the euro, with the exchange rate falling below the HUF 400 per euro threshold for the first time since October 2024, Telex reports. This marks a four-month high for the Hungarian currency. The forint also reached a three-month peak against the US dollar, trading at approximately HUF 380 per dollar.
According to Portfolio, the forint had attempted to breach a significant technical level—the 200-day moving average—three times on Tuesday without success. It wasn’t until Wednesday morning that it convincingly surpassed this barrier, coinciding with the drop below the HUF 400 per euro mark.
Several factors have contributed to this appreciation of the forint. Analysts point to a weakening US dollar, a de-escalation in trade tensions, a slowdown in the American economy, improvements in China’s economic situation, and enhanced growth prospects within the eurozone as reasons for increased optimism regarding the Hungarian currency, Telex writes based on Portfolio’s report.
In response to the forint’s strengthening, Prime Minister Viktor Orbán commented in a Facebook video, stating that the euro’s dip below HUF 400 reminds him of “what peace looks like.”
As of 11:36 AM on 26 February, the forint was trading at HUF 399.8 per euro, maintaining its position near this four-month high. The exchange rate against the dollar stood at HUF 381.
Market participants are closely monitoring upcoming events, including an extraordinary online EU summit and statements from French President Emmanuel Macron regarding US negotiations. These developments, along with preparations for next week’s special EU summit and news related to the resolution of the Russia-Ukraine conflict, have the potential to influence currency markets further.
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