Hungarian forint outperforms peers in early 2025, boosting travel budgets
The Hungarian forint is off to a surprisingly strong start in 2025, gaining more than 3% against the euro and outperforming both the Polish zloty and the Czech koruna, according to a new assessment by K&H Bank’s chief analyst. With these currency movements, a rate of 392 forints to the euro could realistically be reached this summer: a prospect that benefits travellers, making foreign vacations significantly cheaper than many might expect.
The forint leads among emerging market currencies
According to Dávid Németh, chief analyst at K&H Bank, the Hungarian currency is not only strong within the Central European region but is also performing notably well on the international stage. While many emerging market currencies, such as the Romanian leu, Brazilian real, and South African rand, have weakened against the euro, the Hungarian currency has shown steady and gradual appreciation. This is partly due to the Hungarian National Bank maintaining high interest rates, making the forint more attractive to investors, according to a report by Economx. Additionally, Hungary’s current account balance remains in positive territory, further supporting the exchange rate.
Multiple factors behind the forint’s strength
The forint’s stability has held firm despite recent global tensions, such as the conflict between Israel and Iran and escalating trade disputes with the United States. These types of geopolitical events typically hurt emerging market currencies, but the Hungarian currency and its regional peers have proven more resilient this time. Economic indicators across the region are generally favourable, and the Middle East conflict has not triggered a significant shock in energy markets, both factors helping to maintain currency stability.
What to expect this summer
The coming weeks could be critical. In early July, the deadline for postponing U.S. punitive tariffs will expire. If the European Union fails to reach a deal with the United States, new economic pressures could weigh on the region, potentially affecting the forint negatively. However, if global market sentiment remains favourable,
it’s realistic that, after breaking the 398 threshold, the euro could fall to around 392 forints.
Cheaper travel, stronger currency
The strong forint is clearly a win for those planning to travel abroad from Hungary. As it gains value against the euro, families may find their vacation budgets stretch further, whether for a Mediterranean getaway or a long weekend in Greece or Croatia. Those who save in foreign currency or are planning significant overseas spending might consider taking advantage of the current favourable rates.
According to the K&H expert, the forint is likely to trade in a range between 395 and 408 through the end of summer. While market volatility could always change the outlook, the current trend offers reason for optimism, especially for those planning to spend their vacation abroad.
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