Forint at a two-month low due to Trump’s big decision

The Hungarian forint came under renewed pressure this week as escalating trade tensions between the US and China rattled global markets. Following China’s swift response to fresh US tariffs, the Hungarian currency slipped to a two-month low against the euro.

US tariffs on Chinese goods hurt forint

Telex reports that the Hungarian forint experienced renewed volatility on Wednesday following China’s retaliatory tariffs in response to fresh US import duties imposed by the Trump administration. The euro briefly weakened to around 410 HUF, marking a two-month low for the Hungarian currency. According to Portfolio, the currency turbulence stemmed from both the implementation of increased US tariffs on Chinese goods and China’s swift countermeasures announced later that day. Despite a slight recovery by early evening, the Hungarian currency only managed to climb back to approximately 409 against the euro, reflecting persistent market uncertainty.

Not the best year for the Hungarian currency

The start of the year was already challenging for the forint, with the currency falling to a two-year low in early January as the euro climbed towards 416 HUF. A gradual strengthening followed through February, bringing the exchange rate below 400 HUF by month-end. PM Orbán commented briefly on the stability, calling it “peace”. However, the currency has remained sensitive to international developments. Analysts from Erste forecast a return to 415 EUR/HUF by year-end, with a further weakening to 420 by the end of 2026, highlighting a cautious outlook for the Hungarian currency amid ongoing geopolitical tensions.

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