Budapest, January 29 (MTI) – The forint traded at 309.90 against the euro at 2.30pm on Wednesday after sliding from around 304 per euro to 306.79 in a little over 20 minutes just after 10am.
Traders told MTI that the Turkish rise in interest rates coupled with speculative moves were behind the fall.
The forint partially recovered just before central bank governor Gyorgy Matolcsy’s press conference at AmCham and weakened after it, parallel with the Polish zloty.
Financial analysts at 4cast said that it was not surprising that among the current international climate the market started to question the sustainability of the low level of the Hungarian base rate.
Matolcsy called the central bank’s decision to implement a series of rate cuts “correct”.