Delightful news: Forint at a five-month peak against the euro

The forint is on a strong upward trajectory, reaching a five-month high against the euro as investor optimism surrounding European economic policies grows. Strengthened further by positive GDP data and a weakening US dollar, the Hungarian currency continues to gain momentum.

Five-month high

As Portfolio reports, the forint surged to a five-month high against the euro, reaching 398.7 on Tuesday morning, as investor confidence in European economic policies grew. Despite geopolitical tensions, market sentiment remained strong, with the Hungarian currency trading below 400 EUR/HUF before further gains. The National Bank of Hungary confirmed Mihály Varga Mihály’s appointment as central bank governor, which coincided with the currency’s rise. The Polish zloty also strengthened, indicating broader optimism towards regional currencies. Analysts suggest that expectations of fiscal expansion and military investment in Europe are driving the Hungarian currency’s momentum.

Forint on the rise, dollar weakens

VG notes that the forint received a further boost following the release of Hungary’s latest GDP data, continuing its upward momentum. By late morning, the domestic currency had strengthened by 0.16% against the euro, trading at 398.84, while it gained an impressive 0.5% against the dollar, reaching 379.1. A key driver behind the forint’s rise is the weakening of the US dollar, as the DXY dollar index fell 0.27% amid investor concerns over newly implemented tariffs targeting China, Canada, and Mexico. Market expectations of further Federal Reserve rate cuts have also contributed to the dollar’s decline, enhancing the Hungarian currency’s relative appeal.

Read also:

• Long unseen: EUR/HUF rate falls below 400
• Hungary’s economic outlook for 2025: here’s what experts have to say on inflation, forint exchange rate

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