Hungarian forint to surge higher and higher against the euro and dollar

The Hungarian forint staged a remarkable rally on Tuesday, reaching exchange rate levels not seen for years and surprising even seasoned market observers. After hovering close to 390 against the euro only days earlier, the currency strengthened sharply, briefly pushing the euro below the psychologically important 380 mark and settling around 379 in afternoon trading.

Hungarian forint to climb higher and higher

As Pénzcentrum reporterd, the move marks a significant turnaround for the Hungarian forint, which has spent much of the past year under pressure. By late afternoon, one euro was trading at roughly 379.4 forints, while the US dollar dropped below 318 forints, at one point even touching the 317 level. Such a strong dollar-forint rate has not been observed since early 2022, highlighting the scale of the current appreciation.

The rally began in the morning hours, when the euro was still quoted above 381 forints. Momentum built steadily throughout the day, and by shortly after 4 PM the Hungarian forint had broken through key technical thresholds. Analysts note that levels below 380 against the euro were last seen in early 2024, though at that time the strengthening proved short-lived. This time, however, market sentiment appears more supportive.

What’s the reason behind the forint reaching these heights?

A major factor behind the forint’s surge is the Hungarian National Bank’s (MNB) latest interest rate decision. At its most recent meeting, the Monetary Council opted to keep the base rate unchanged at 6.5%, reinforcing the bank’s commitment to a tight monetary stance. The consistently high interest rate continues to make the forint attractive to investors, particularly in a regional context.

Equally important was the central bank’s cautious tone. While inflation has shown clear signs of easing towards the end of 2025, policymakers emphasised that any future rate cuts would depend on how consumer prices evolve in early 2026. This careful communication reassured markets that the MNB is not rushing into premature easing, supporting confidence in the currency.