Hungarian currency: will EUR/HUF be 450 or 350 sooner?

Much could be decided in the coming weeks about EU funds and central bank measures. All of these affect the Hungarian currency’s performance. Whatever happens, we will either shift towards the much coveted 350 or the much dreaded 450 EUR/HUF level.

In recent months, the Hungarian currency market has been characterised by large movements. In mid-October, the EUR/HUF exchange rate was well above 430. However, since then, we have seen a brief period of below 400. Will we end up buying EUR above or below 400 in the future? It may depend to a large extent on the fate of EU funds and confidence in the central bank, tozsdeforum.hu writes.

The fluidity of the exchange rate

The exchange rate of a currency can be determined by a number of internal and external factors. Thus, in principle, we should not be surprised by large swings in the forint exchange rate. While the current account of Hungary has improved due to the months-long decline in gas prices (which are currently rising), inflationary pressures remain very strong, tozsdeforum.hu reminds us. While international investor sentiment has become more positive in recent weeks, the Russia-Ukraine war is also prompting investors to be careful with Hungarian assets.