The Hungarian forint has reached levels not seen in nearly five years. The euro slipped below the psychologically significant 350 mark both yesterday and today, while the Hungarian currency has strengthened markedly against the dollar, sterling and even the Japanese yen. The question now is what is driving this rally, and how long it can be sustained.
Unquestionable strengthening
In recent days, the Hungarian currency has gathered fresh momentum, strengthening once again below 350 against the euro on Tuesday. This threshold is widely regarded as a key milestone in currency markets, with the forint last trading at such levels in September 2021. It currently stands at 349.98, which is a level last seen on 11 September 2021. The appreciation is particularly striking given that a year ago the exchange rate hovered around 400, with similar levels observed as recently as early March this year.
Against the US dollar, the Hungarian currency has also posted significant gains, although this trend has been driven in part by developments in American politics. In January last year, prior to President Trump’s inauguration, the dollar traded above 400 forints. Since then, it has been on a steady decline. Although the dollar briefly strengthened to around 346 forints in March, it has since weakened again, now hovering close to 300, with some analysts suggesting it could fall below that threshold.
Where the forint stands now
During Tuesday’s trading session, the forint moved within the following ranges:
- €1: approximately 350;
- $1: around 301–302;
- £1: roughly 412–415;
- ¥100: approximately 211–213.
What is driving the surge?
Analysts point to a confluence of favourable factors. Chief among them is Hungary’s still relatively high interest rate environment, which remains attractive to international investors. Higher yields have encouraged demand for forint-denominated assets, supporting the currency, Portfolio wrote.
Inflation has also eased significantly in recent months, bolstering investor confidence. Lower inflation tends to bring greater economic predictability, improving the overall outlook for the currency.
However, the Hungarian currency’s strength is not just a domestic story. The US dollar has weakened against several major currencies in recent months, creating a supportive backdrop for emerging market currencies, including the forint. As a result, the dollar-forint exchange rate has fallen to around 305.
Risk appetite has also improved more broadly across global markets, further benefiting regional currencies. Notably, the Hungarian currency has outperformed many of its peers in recent months. This is partly attributable to Hungary’s change of government on 12 April, alongside growing clarity that EU funds will begin to flow once more. Billions of euros are expected to enter the Hungarian economy in the coming months and years.
A further development came yesterday, with indications of a potential agreement between the United States and Iran, which could be signed as early as Friday. Such a deal may lead to the reopening of the Strait of Hormuz to oil and gas shipments, potentially easing global energy prices.
In short, the forint’s rally has been driven less by a fundamental strengthening of the Hungarian economy than by improved global conditions and forward-looking market confidence.
How does it compare in the region?
Most Central European currencies have performed well in the first half of 2026, though none have matched the forint’s pace of appreciation.
The Polish zloty — traditionally one of the region’s strongest currencies — has remained stable against both the euro and the dollar. While the forint has at times strengthened more rapidly this year, the zloty is still widely regarded as one of the region’s most stable currencies.
The Czech koruna likewise remains among the strongest, supported by lower inflation and a historically conservative monetary policy. Nevertheless, the forint’s recent rally has narrowed the gap.
The Romanian leu has also been stable, though this is largely due to more active intervention by the central bank — a practice previously seen in Hungary. As a result, the leu exhibits far less volatility than either the forint or the zloty.
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Which is the strongest currency?
In terms of long-term stability, the Czech koruna and Polish zloty remain in a stronger position than the forint. However, judged by performance this year alone, the forint has emerged as one of the region’s best-performing currencies, gaining nearly 45 forints against the euro in a matter of months.
What comes next?
Analysts regard the 350 level against the euro as a key psychological threshold. In the short term, further gains cannot be ruled out, particularly if global investor sentiment remains favourable and the dollar does not stage a significant recovery. That said, there are increasing warnings that such a rapid appreciation may be followed by a correction.
Striking new Hungarian forint coins have been issued, though only in limited numbers
Experts cited by Forbes suggest that Hungary’s economy would benefit less from an exceptionally strong currency than from one that is stable and predictable. While importers and travellers may welcome the stronger forint, exporters are likely to feel the strain. Several firms have already revised down their profit expectations in response.
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