Shocking: Forint in free fall, historic lows against the American dollar, GBP, CHF, PLN!
The considerable strengthening course of the American dollar following the victory of Donald Trump makes it hard for the emerging currencies to keep up. Since the Eurozone PMI hit a 10-month low, the euro started to fall against the dollar, worsening the above-mentioned situation. However, the forint performs badly not only against the dollar. The Hungarian currency reached a historic low against the Swiss franc (CHF), the pound sterling (GBP), and even the Polish zloty (PLN).
According to portfolio.hu, the last time the euro was this weak was in November 2022. In October 2022, the forint reached an all-time historic low against the American dollar and the euro. However, thanks to the intervention of the Hungarian National Bank increasing the base rate sky-high, the Hungarian forint’s free fall could be stopped.
Now, the forint exceeds new historic lows against the USD, GBP, CHF and PLN daily.
Historic lows against the American dollar, GBP, CHF, PLN
Currently, the Hungarian currency stands at 395.5 against the American dollar. The last time the forint’s depreciation reached such a shocking level against the American currency was in December 2022. The all-time historic low against the dollar was 435.5 on 8 October 2022.
Prospects are grimmer in the case of the Swiss franc. Following the conversion of CHF loans to forint, Hungarians do not follow the exchange rate changes of the CHF. Data show that the last time the Swiss franc was so strong against the forint was in September 2022 with HUF 437/1 CHF. Now, the exchange rate is at an all-time historic low above HUF 444/1 CHF.
The forint reached an all-time low against the pound sterling in November as well. Currently, the exchange rate is above 495.5. On 10 December 2022, it stood at 487.1. However, the current all-time historic low is the consequence of a constant and gradual weakening, while the 2022 low was just a swing since on 17 December 2022, the exchange rate was “only” 464.
Concerning the regional currencies, the Polish zloty also performs better against the forint and stands at a historic high with HUF 94.7/PLN 1 at the moment, even though the strengthening of the dollar is bad news for all emerging currencies like the Polish zloty.
Forint eases on interbank forex market
The forint traded at 411.37 to the euro around 10:00 in the morning on Friday, edging down from 411.06 late Thursday. The forint weakened to 394.00 from 391.96 against the dollar. It slipped to 444.13 from 442.35 to the Swiss franc, the MTI wrote.
BUX rises in early trade
The Budapest Stock Exchange’s main BUX index was up 0.29pc at 79,460.46 about 15 minutes after the opening bell on Friday. OTP Bank edged up 0.09pc to HUF 21,620 and oil and gas company MOL rose 0.37pc to HUF 2,686. Pharma share Richter climbed 0.37pc to HUF 10,850 and Magyar Telekom advanced 0.98pc to HUF 1,240. The BUX finished the session on Thursday up 0.17pc. Turnover reached HUF 11.3bn, MTI added.
Read also:
- Forint’s freefall: The dollar and euro take a toll on Hungary’s economy
- National Bank of Hungary introduces HUF 50,000 coin – check out the images of it in our article
Valuableness – worth of the Forint just GROWS.
What’s to STOP it ?
What can the Hungarian National Bank DO – measures NEW – to WHAT they have already TRIED, that have not had impact on the DOWNFALL – the on-going TREND downwards, on the Forint ?
Minister of Finance – Mihaly Varga – God HELP us, if we think he has the “Magical Wand” to stop this catastrophe, on the “Smashing” of Forint.
Varga, accompanied with Victor Orban – are jointly the catalyst muchly why the BOMBARDMENT goes on of the forint.
Varga – an Economic & Financial “Dud” – that what we have of the “Balance Sheet” in Hungary now, of his wrongful policy doings – his creations.
It ALL is FAR from being OVER – the “Smashing” of the forint.
It will add further pain to Hungary and personally to our POCKETS.
Orbán with his brainless Fidesz cronies like Varga and Matolcsy are not fit to be in their jobs.
Fourteen years of mismanagement by them proves their lack of intellect in economics and finance, which makes all Hungarians poorer and the foreigners richer.
They are selling Hungary to foreigners.