The Hungarian forint suffered a sharp sell-off on Wednesday after a combination of geopolitical tensions and concerns over Hungary’s public finances unsettled investors. The currency weakened significantly against both the euro and the US dollar, reversing part of the strong gains it had made over the past six months.
Trump’s comments spark first wave of losses
The first blow came after Donald Trump signalled that a previously announced ceasefire related to the conflict involving Iran was effectively over. Speaking at the NATO summit in Ankara, Trump also indicated that further action against Iran’s leadership could follow and ruled out negotiations with Tehran.
This prompted investors to move away from riskier assets, putting immediate pressure on emerging-market currencies, including the forint. By late morning, the euro had climbed from around HUF 354.7 at the start of trading to nearly HUF 359, while the US dollar rose from around HUF 311 to above HUF 314, according to Portfolio.
At the same time, oil prices rose and government bond yields across the eurozone climbed as markets reacted to fears of a bigger regional conflict.
Budget report triggers further sell-off
The forint came under even greater pressure later in the day after Hungary’s Ministry of Finance published the findings of its budget review.
The report revealed that the country’s fiscal position is significantly weaker than previously expected, warning that without corrective measures, the budget deficit could have exceeded 8% of GDP by the end of the year, compared with the 3.7% target adopted under the previous government.
Adding to investor concerns, Finance Minister András Kármán told a press conference that the government has no specific exchange rate target for the forint. Following the announcement, the sell-off accelerated.
Euro climbs above 361 forints
The euro briefly surged above HUF 361, reaching an intraday high of HUF 361.598, its highest level since mid-May. The US dollar climbed to HUF 317.3, roughly 7 forints higher than its morning level, representing a daily increase of more than 2.2%.
Although the forint recovered some of its losses later in the evening, the euro remained close to HUF 360, while the dollar traded around HUF 315.
Strong first half of the year partly erased
Wednesday’s decline followed an exceptionally strong first half of 2026 for Hungary’s currency. Before the latest sell-off, the forint had appreciated by more than 7% against the euro and nearly 6% against the US dollar since the beginning of the year.
On 16 June, the euro briefly traded below HUF 349, while the dollar came within a few fillér of the HUF 300 mark.
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