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