Hungarian forint has been hammered again: HUF has hit a new historic low! – UPDATE

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Photo: Alpár Kató, DNH

The Hungarian forint started Tuesday with a sharp weakening against the leading currencies. 

On Tuesday morning, the euro was up slightly to 405.37 forints at half-past 9, reaching a new all-time high, according to Portfolio. Shortly before, it was at 404.87 forints, while in the morning it started from around 402 forints.

The dollar also hit a new historic low of 388.2 forints to dollar, also around half-past 9.

Underperforming the forint

The Czech koruna is flat today, the Polish zloty is down 0.25% and the forint has weakened 0.6% against the euro. In other words, the trend of the past weeks continues: the forint is persistently underperforming regional currencies.

As we wrote earlier, the Hungarian Central Bank’s interest rate hike last week, the simplification of the monetary policy toolkit, and the tight tone (further rate hikes) only temporarily strengthened the forint, we are back above the 400 level and the domestic currency has reached new lows.

Investors continue to be concerned about uncertainties surrounding Hungarian economic policy (EU dispute over EU funds, special taxes imposed, decree governance), which is also putting pressure on the forint exchange rate.

We also discussed the reason why the Hungarian forint keeps weakening, details HERE.

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UPDATE

Forint weakens to new low

CHF

The Hungarian forint weakened to 406.19 from 400.68 to the Swiss franc.

EUR

The forint fell to a new low against the euro, trading at 404.87 around 10:00 in the morning on Tuesday’s forex market, weakening from 401.84 late on Monday.

USD

The forint softened to 390.31, a new low against the dollar, slipping from 385.31.

Official forint fixing of the National Bank of Hungary

 

Budapest forint fixing – 2022. July 05. 11:39
Australian dollar           266.78
Brazilian real               73.69
Bulgarian lev               206.96
Canadian dollar             303.88
Chinese yuan                 58.58
Croatian kuna                53.77
Czech crown                  16.36
Danish krone                 54.41
Euro                        404.79
Hong Kong dollar             50.05
Iceland krona                 2.90
Indian Rupee                  4.96
Indonesian Rupiah (100)       2.62
Israeli shekel              111.24
Japanese yen (100)          289.09
Malaysian Ringgit            88.86
Mexican peso                 19.26
New Romanian lei             81.87
New Zealand dollar          241.88
Norwegian kroner             39.26
Philippine Peso               7.08
Polish zloty                 85.46
Pound sterling              473.04
Russian ruble                 6.83
Serb dinar                    3.45
Singapore dollar            279.86
South African rand           23.89
South-Korean won (100)       29.95
Swedish krona                37.48
Swiss franc                 407.23
Thai baht                    10.96
Turkish lira                 23.14
Ukrainian hryvna             13.29
USA dollar                  392.73

UPDATE

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Read alsoForint at new lows against the euro, dollar and Swiss franc! – UPDATE

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