Hungarian forint falls at brutal pace: where will it land?

The Hungarian forint is depreciating: on Wednesday afternoon, the EUR/HUF exchange rate was already 394. How much further can it go?

On Wednesday, the Hungarian currency weakened by almost 1%. The euro now costs HUF 394, but the currency has also weakened against the US dollar, with the latter now costing HUF 362 on Thursday.

The zloty is also strengthening against the forint

Not all payers in the region are experiencing a dip. For example, the Polish zloty is soaring against the forint, now at an all-time high: the Polish currency is now worth almost HUF 91, the highest-ever rate. The strengthening of the zloty may be driven by the upcoming agreement on Polish EU money.

An unnamed investor in Budapest told Reuters that he believes the domestic currency will weaken to 395 against the euro within a month, and any strengthening will be temporary, with the MNB’s accelerated interest rate cuts weakening the forint, szeretlekmagyarorszag.hu reports.

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