Forint surges to multi-year peak as a turning point looms

The forint continues to break multi-year records, having gained significantly since April, when one euro cost 410 forints; it now holds steady below 390, with further strengthening expected. Against the dollar, the Hungarian currency has not been this strong since the early months of the Russian invasion of Ukraine. However, analysts warn of turbulence ahead in 2026.

Forint keeps gaining strength

Anyone tracking the forint’s performance today would be in high spirits, as the Hungarian currency continues to reach new heights against both the euro and, notably, the US dollar. This trend does not come as a surprise: since the start of the American president’s second term, efforts have been made to reduce the US trade deficit and weaken the dollar, encouraging the return of low-value production processes to US soil.

It is no coincidence that the forint has strengthened by 20% against the dollar since the beginning of the year. Currently, one dollar costs 329.85 forints, having even dipped below 328 earlier in the day. The last time the forint was this strong against the dollar was in April 2022, portfolio.hu reports.

The forint is also performing well against the euro. Earlier today, the exchange rate briefly dipped below 388 HUF/EUR (currently 389.2), marking its highest level in over a year — although it remains far from the pre-COVID rate of 329.

• The forint is at multi-year highs, but how long can the momentum last?

Dominating regional currencies too

The forint is also faring well against regional currencies, having strengthened against both the Czech koruna and the Polish zloty. Against the zloty, it has not been this strong since last August, with the current rate standing at 91.26. This suggests investors currently see forint-based assets as more attractive than their Polish or Czech counterparts.

The forint currently trades at 447.76 to the British pound, 46.4 to the Chinese yuan, and 416.51 to the Swiss franc.

• Two-year high: the future of the forint according to analysts

Why is the forint rising?

Primarily because Hungary’s central bank has maintained a relatively high base rate of 6.5%, prompting many to hold or invest in forint-based assets. Meanwhile, the Federal Reserve — the US central bank — recently cut its key interest rate by 25 basis points, further weakening the dollar in line with Trump’s policy approach. The Bank of England kept rates unchanged, while favourable US unemployment data also worked in the forint’s favour.

According to portfolio.hu, even though the third quarter is not yet over, the forint may still emerge as the global champion of currency strengthening. Since June, it has gained 6% against the euro — roughly half of which can be attributed to the weakening of the dollar.

Overvalued forint—storm clouds in 2026

Zoltán Varga, senior analyst at Equilor Investment Ltd., told MTI that the persistently high base rate supports the forint’s strength. However, he believes the forint is currently overvalued on fundamental grounds, and said that while short-term gains may continue, the outlook is more cautious.