Forint rises from the ashes: seven-month high against the dollar
The forint has shown remarkable strength against the US dollar, reaching a seven-month high, driven in part by recent developments in US politics.
Forint at a seven-month high
According to Portfolio, in a significant rally on Easter Monday, the Hungarian currency fell below the 354 mark against the US dollar, its strongest level in seven months. Despite the stock markets being closed, active trading in the foreign exchange markets highlighted the forint’s impressive performance. The Hungarian currency strengthened further in the afternoon, reaching 353.4. This surge came amid growing concerns over the potential replacement of US Federal Reserve Chairman Jerome Powell by President Donald Trump. The prospect of this change has raised doubts about the Fed’s independence, contributing to a weakening of the dollar.
Minimal movement against the euro
While the Hungarian currency showed minimal movement against the euro, fluctuating within a narrow band between 407.4 and 407.7, its rise against the dollar was notable. Analysts suggest that its strength is largely due to the broader weakness of the US dollar rather than any significant improvements in Hungary’s economic fundamentals. Nevertheless, this favourable shift in currency dynamics could provide Hungarian businesses with valuable opportunities, particularly those engaged in trade with the US.
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