Hungarian forint continues its freefall, faces two-year low against USD

The Hungarian forint continues its downward spiral, hitting a two-year low against the dollar and showing no signs of stabilising. With experts predicting that the EUR/HUF exchange rate could weaken to 425 by spring 2025, the currency’s struggles could spell prolonged economic challenges for Hungary.

Nothing stops the forint from falling

As Forbes reports, on Monday, the Hungarian forint weakened further against the euro and reached a two-year low against the dollar, surpassing USD/HUF 406. This decline is likely driven by the dollar’s ongoing strength against the euro, which hit a new two-year high earlier in the day, a trend that often puts pressure on emerging market currencies. Looking ahead, Goldman Sachs predicts the dollar will strengthen by another 5% against the euro over the next year, fuelled by robust US economic growth and President Donald Trump’s tariff policies. This projection spells further challenges for emerging market currencies, including the forint.