Forint Gains Fourth Day Leading Emerging Rally
Bloomberg said, the forint gained for a fourth day as data showed Hungary’s manufacturing expanded at the fastest pace in six months and on speculation the Federal Reserve will maintain stimulus as a U.S. government shutdown slows growth.
The currency appreciated 0.4 percent to 296.18 per euro by 3:06 p.m. in Budapest, extending its advance in the past four days to 1.2 percent, the most among 24 emerging-market currencies tracked by Bloomberg. The Debt Management Agency sold 40 billion forint ($183 million) in 3-month Treasury bills at an auction today at an average yield of 3.51 percent, the lowest on record, according to data compiled by Bloomberg.
The purchasing managers’ index in Hungary, which emerged from recession in the first quarter this year, rose to 54.5 in September from 51.8 in August, the highest level since March, MLBKT, which compiles the data, said in an e-mail. Readings above 50 signal expansion. The U.S. shutdown may lead to the Fed further delaying tapering of bond buying, increasing appetite for riskier assets such as Hungary’s, Gergely Palffy, an analyst at Buda-Cash Brokerhaz Zrt., said by phone from Budapest.
“As this morning brought no panic from the U.S. shutdown that led to selling in euro-forint,” Robert Csajbok, a Budapest-based currency trader at ING Groep NV, wrote by e-mail. “As the end of the tunnel emerges in the U.S. shutdown problem that may bring another risk-on wave to the market.”
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